Appellate Tribunal grants waiver of pre-deposit on Service Tax appeal

The Appellate Tribunal allowed the Revenue's application for an out-of-turn hearing of a Stay Petition concerning a substantial amount in Appeal No.ST/124/2012. The appellant complied with the Supreme Court's directive by depositing 50% of the Service Tax amount and securing sureties, leading to the Tribunal granting the waiver of pre-deposit of interest and penalty under Section 76 of the Finance Act, 1994. Recovery of interest and penalty was stayed pending appeal disposal.

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Issues:
1. Early hearing of Stay Petition
2. Waiver of pre-deposit of Service Tax, interest, and penalty under Section 76 of Finance Act, 1994

Issue 1: Early hearing of Stay Petition
The Appellate Tribunal received a miscellaneous application for the early hearing of Stay Petition No.ST/S/304/2012 in Appeal No.ST/124/2012. The Deputy Registrar highlighted the substantial amount involved in the appeal, suggesting an expedited disposal of the Stay Petition. Both sides expressed readiness to argue the Stay Petition, leading to its consideration for immediate disposal. Consequently, the Tribunal allowed the Revenue's application for an out-of-turn hearing of the Stay Petition.

Issue 2: Waiver of pre-deposit of Service Tax, interest, and penalty
The Stay Petition sought a waiver of pre-deposit of Service Tax amounting to Rs.1,32,00,009, along with the associated interest and penalty under Section 76 of the Finance Act, 1994, concerning Renting of Immovable Property Services. The appellant's counsel referred to a writ petition by the Retailers Association of India before the High Court of Bombay, which led to a Supreme Court directive for depositing 50% of arrears in installments and providing a solvent surety for the remaining 50%. The appellant demonstrated compliance with the Supreme Court's order by depositing 50% of the amount and securing solvent sureties from specific entities within the Future Group Venture.

In light of the above, the Tribunal acknowledged the appellant's adherence to the Supreme Court's directives and the securement of the entire Service Tax liability. Consequently, the Tribunal found a prima facie case for waiving the interest and penalty amounts. Therefore, the application for the waiver of pre-deposit of interest and penalty was granted, and the recovery thereof was stayed pending the disposal of the appeal.

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