2011 (6) TMI 356 - AT - Service Tax

Tribunal Waives Pre-Deposit for Penalty in Service Tax Case

The Tribunal granted the waiver of pre-deposit for the penalty amount in a service tax liability case related to 'Technical Testing and Analysis' services ... Waiver of predeposit - Service tax on Technical Testing and Analysis - Appellant is claiming that they have deposited the entire amount of service tax due in this case by relying upon the challan - Held that:- Subject to verification that the said amount is included in challans, which needs to be done by the lower authority, the application for waiver of pre-deposit of the amount of penalty involved is allowed and recovery thereof stayed till the disposal of the appeal -DR directed to get verification report of the amount indicated in the challan and file a report before this Bench. Issues:Waiver of predeposit of service tax liability confirmed by adjudicating authority for non-discharging service tax liability on 'Technical Testing and Analysis' services for the period 2008-09.Analysis:The appellant filed a stay petition seeking waiver of predeposit of Rs.21,75,743/-, the amount confirmed as service tax along with interest and penalties by the adjudicating authority for not discharging service tax liability on 'Technical Testing and Analysis' services for the period 2008-09. The appellant claimed that they had already deposited the entire service tax liability during September 2009 and March 2010, including the amount confirmed in this case. The learned Counsel supported this claim by producing a copy of the challan. On the other hand, the learned SDR raised doubts regarding whether the amount indicated in the challan indeed included the confirmed amount. The Tribunal noted the appellant's assertion and directed the lower authority to verify if the amount deposited encompassed the confirmed service tax liability. Pending verification, the Tribunal allowed the application for waiver of pre-deposit of the penalty amount and stayed the recovery until the appeal's disposal. The Departmental Representative was instructed to obtain a verification report of the challan amount and submit it to the Bench by a specified date.This judgment primarily revolves around the issue of waiver of predeposit concerning a service tax liability case related to 'Technical Testing and Analysis' services for the year 2008-09. The appellant contended that they had already paid the entire service tax amount, including the sum confirmed by the adjudicating authority, as evidenced by the challan provided. The Tribunal acknowledged the appellant's submission but emphasized the need for verification to ascertain if the confirmed amount was indeed covered in the deposited sum. Consequently, the Tribunal granted the waiver of pre-deposit for the penalty amount subject to verification and stayed the recovery process until the appeal's finalization. The decision underscores the importance of ensuring the accuracy of deposited amounts in service tax cases before determining the necessity for predeposit waivers.