Tribunal Orders Deposit of 50% Service Tax Within 8 Weeks or Risk Appeal Dismissal

The Tribunal directed the applicant to deposit 50% of the service tax within eight weeks, deducting the amount already paid, failing which the appeal would be dismissed. The balance amount would be waived upon deposit, and recovery stayed during the appeal's pendency. The Tribunal emphasized the importance of complying with the law and the interest of Revenue in making its decision.

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Issues: Application for waiver of predeposit of service tax and penalty under Section 78 of the Finance Act, 1994.

The judgment pertains to an application for waiver of predeposit of service tax amounting to Rs.1.15 Crores and an equal penalty imposed under Section 78 of the Finance Act, 1994. The applicant failed to appear for multiple hearings despite notices. The Revenue argued that the services provided by the applicant, including Architect Services, Franchise Services, and Business Auxiliary Services, were taxable under Commercial Training or Coaching Services, for which the applicant did not obtain registration or pay service tax. The applicant claimed exemption under Notification No.9/2003-ST and Notification No.24/2004-ST, stating that their services were vocational training. The Commissioner found the applicant liable for service tax and denied the exemption based on evidence provided. The Tribunal noted the lack of contrary evidence in the appeal and directed the applicant to deposit 50% of the service tax within eight weeks, deducting the amount already paid, failing which the appeal would be dismissed. The balance amount would be waived upon deposit, and recovery stayed during the appeal's pendency. The Tribunal emphasized the importance of complying with the law and the interest of Revenue in making its decision. The stay petition was disposed of accordingly.

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