Tribunal orders Rs.15.00 lakh deposit within 12 weeks to waive Service Tax pre-deposit & penalty. Failure may lead to dismissal. The Tribunal directed the applicant to deposit Rs.15.00 lakhs within twelve weeks for waiver of pre-deposit of Service Tax and penalty. Compliance would ...
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Tribunal orders Rs.15.00 lakh deposit within 12 weeks to waive Service Tax pre-deposit & penalty. Failure may lead to dismissal.
The Tribunal directed the applicant to deposit Rs.15.00 lakhs within twelve weeks for waiver of pre-deposit of Service Tax and penalty. Compliance would result in waiving the balance dues and stay on recovery during the appeal. Failure to deposit would lead to appeal dismissal without notice. The Tribunal considered financial hardship and Revenue's interest but did not grant total waiver due to lack of prima facie evidence initially presented.
Issues: Application for waiver of pre-deposit of Service Tax and penalty under Rule 78 of the Finance Act, 1994.
Analysis: - The application sought waiver of pre-deposit of Service Tax amounting to Rs.1,01,12,083/- and an equal amount of penalty imposed under Rule 78 of the Finance Act, 1994. - The demand was confirmed due to non-production of invoices/documents before the Ld. Commissioner. - The applicant's Chartered Accountant submitted that they now possess all necessary documents/invoices to establish that the confirmed service tax is not payable, as the services charges pertain to a non-taxable period. - The Chartered Accountant offered to make a pre-deposit of Rs.15.00 lakhs. - The Revenue argued that all invoices/documents were not produced before the Commissioner, leading to the confirmation of the demand. - The Tribunal noted that the applicant could not produce all evidence initially but claimed to possess them now. - The documents were presented for the first time before the Tribunal and were not verified for relevance and genuineness by the adjudicating authority. - While the Tribunal did not find a prima facie case for total waiver of pre-deposit, considering financial hardship and the interest of Revenue, it directed the applicant to deposit Rs.15.00 lakhs within twelve weeks. - On compliance, the balance amount of dues adjudged would be waived, and recovery stayed during the appeal's pendency. - Failure to deposit the amount would lead to the dismissal of the appeal without further notice.
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