Appellant ordered to pre-deposit Rs.10,00,000 within six weeks, stay on recovery during appeal The Tribunal ordered the appellant to make a pre-deposit of Rs.10,00,000 within six weeks, with a compliance report due on 27.8.2013. Upon this deposit, ...
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Appellant ordered to pre-deposit Rs.10,00,000 within six weeks, stay on recovery during appeal
The Tribunal ordered the appellant to make a pre-deposit of Rs.10,00,000 within six weeks, with a compliance report due on 27.8.2013. Upon this deposit, the requirement for further pre-deposit of the remaining dues was waived, and a stay against recovery was granted during the pendency of the appeal.
Issues: 1. Stay against recovery of service tax demand from June 2005 to August 2006, including interest and penalty. 2. Applicability of service tax on IT services provided by the appellant. 3. Requirement of pre-deposit amount pending appeal based on Tribunal decisions.
Analysis: The appellant sought a stay against the recovery of over Rs.73 lakhs, comprising service tax demand from June 2005 to August 2006, along with interest and penalty. The appellant's representative argued that they offer IT services and receive payments either as fixed fees or on a time and material basis. They contended that for payments received as fixed fees, no demand was raised, but demands were made for similar services where charges were based on time and material. The appellant claimed that they fall under the category of IT services, not manpower supply services, and cited Tribunal decisions supporting their position. They highlighted that since 2008, they have been paying service tax under the IT service category. On the other hand, the Departmental Representative referred to a Tribunal decision involving M/s. Sasken Communications Technologies Ltd., where a significant pre-deposit was required.
The Tribunal, considering the circumstances and the precedent set in the M/s. Sasken Communications Technologies Ltd. case, ordered the appellant to make a pre-deposit of Rs.10,00,000 within six weeks, with a compliance report due on 27.8.2013. Upon this deposit, the requirement for further pre-deposit of the remaining dues was waived, and a stay against recovery was granted during the pendency of the appeal. The decision was pronounced and dictated in open court by the presiding judge.
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