Tribunal upholds Service Tax demand for 2003-2009, sets condition for further appeal

The tribunal confirmed the demand of Service Tax for the period from 2003-2004 to 2008-2009. The appellant, a sub-contractor, argued that the Service Tax liability imposition was time-barred due to regular return filings with lower authorities. The tribunal acknowledged the contentious nature of the issue and required detailed examination during final appeal disposal. Despite the appellant's claim of financial hardships, lacking documented proof, the tribunal considered the appellant's statement and imposed a condition for further appeal consideration. The tribunal directed the appellant to deposit Rs.15 lakhs within eight weeks and report compliance by 03.07.2013. Compliance would lead to approval of the waiver of the remaining balance, with recovery stayed until the appeal's final disposal.

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Issues:
Confirmation of demand of Service Tax for the period from 2003-2004 to 2008-2009; Discharge of Service Tax liability under Commercial or Industrial Construction services as a sub-contractor; Invocation of extended period of limitation for non-filing of returns for 2004-2005 and 2005-2006; Consideration of Board's circular dt.23.08.2007 regarding sub-contractor's liability; Financial hardships faced by the appellant.

The judgment addresses the confirmation of demand of Service Tax for the period from 2003-2004 to 2008-2009. The appellant, a sub-contractor, argues that the Service Tax liability imposition is time-barred due to regular return filings with lower authorities. The respondent contends that the appellant failed to file returns for 2004-2005 and 2005-2006, justifying the extended period of limitation. The tribunal acknowledges the contentious nature of the issue, requiring detailed examination during final appeal disposal. The tribunal notes the appellant's regular filing of Service Tax returns for 2006-2007 and 2007-2008, indicating payment. The tribunal determines that the Service Tax liability within one year of the show cause notice issuance is applicable, issued on 08.09.2009. Despite the appellant's claim of financial hardships, lacking documented proof, the tribunal considers the appellant's statement and imposes a condition for further appeal consideration.

The tribunal directs the appellant to deposit Rs.15 lakhs within eight weeks and report compliance by 03.07.2013 to the Deputy Registrar, CESTAT, Ahmedabad. Upon verification of compliance, the file will be presented before the Bench for an appropriate order on 10.07.2013. Subject to compliance, the application for waiver of the remaining balance is approved, and recovery is stayed until the appeal's final disposal.

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