Tribunal grants Stay Petitions, waives pre-deposit of Service Tax, interest, and penalties under Finance Act.

The Tribunal granted the Stay Petitions, waiving the pre-deposit of Service Tax, interest, and penalties under Sections 76, 77, and 78 of the Finance Act, 1994, totaling Rs. 34,353. It emphasized the individual apportionment of Service Tax liability for co-owners of a property based on the benefit of relevant notifications, granting stays until the appeals are resolved.

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Issues:
Waiver of pre-deposit of Service Tax, interest, and penalties under Sections 76, 77, and 78 of Finance Act, 1994 for renting of property.

Analysis:
The judgment pertains to three Stay Petitions seeking waiver of pre-deposit of Service Tax, interest, and penalties under Sections 76, 77, and 78 of the Finance Act, 1994, totaling Rs. 34,353. The amounts were confirmed by the adjudicating authority and upheld by the first appellate authority on the basis that the appellants are jointly and severally liable for Service Tax related to renting property, which is attributable or apportionable to individual shares. Despite no representation from the appellants or any request for adjournment, the Tribunal proceeded to consider the Stay Petitions due to the narrow compass of the issue.

Upon hearing the ld. D.R. and examining the records, the Tribunal noted that in similar situations where appellants are co-owners of a property, income from such property should be apportioned individually to the co-owners. The liability to Service Tax for each co-owner must be determined based on the benefit of SSI Notification No. 6/2005. The Tribunal observed that in such cases, where a prima facie case for waiver of pre-deposit is established, they have been granting stays. Consequently, the Tribunal found no reason to deviate from this approach and granted the applications for waiver of pre-deposit, staying the recovery until the appeals are disposed of.

In conclusion, the Tribunal allowed the Stay Petitions for waiver of pre-deposit of the amounts involved, emphasizing the need to individualize the apportionment of Service Tax liability for co-owners of a property and considering the benefit of relevant notifications in such cases.

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