2014 (7) TMI 237 - AT - Service Tax

Tribunal orders partial waiver of pre-deposit in Service Tax appeal

The Tribunal directed the applicant to deposit Rs. 1.00 crore within eight weeks, against the now calculated liability of Rs. 1.40 crores, with the ... Waiver of pre-deposit of Service Tax - Penalty u/s 76, 77 & 78 - Mining services - Held that:- appellant submits that for the period after 1/6/2007, they have discharged service tax on mining services. The amount now stated by the Ld. Special Counsel has not been mentioned anywhere in the impugned order. Therefore, at this stage it is difficult to ascertain the correct figure of liability and on account of service tax on Mining after 01/06/2007. This Tribunal before 01/06/2007, on similar circumstances, has allowed the stay application in other cases. In the result, the offer of ₹ 1.00 crore against the now calculated liability of ₹ 1.40 crores, by the Revenue, seems to be reasonable - stay granted partly. Issues: Application for waiver of pre-deposit of Service Tax, penalty under various sections of the Finance Act, 1994.Analysis:1. The application sought waiver of pre-deposit of Service Tax amounting to Rs. 9.05 Crores along with penalties imposed under Sections 78, 76, and 77 of the Finance Act, 1994. The demand was initially issued for Rs. 16.21 crores but was reduced to Rs. 9.05 crores during adjudication due to a calculation error pointed out by the applicant.2. The applicant, providing mining services against work orders, argued that a portion of the demand pertained to services rendered outside the jurisdiction of Bolpur Commissionerate where they were separately registered with the Service Tax Department. The Ld. Sr. Advocate contended that the demands related to these Commissionerates could not be confirmed by the Bolpur Commissionerate.3. The Ld. Advocate highlighted that the applicant had started paying service tax under the category of Mining services from June 1, 2007, onwards. Referring to previous tribunal decisions, the applicant argued for the stay application, emphasizing the Tribunal's past decisions in similar circumstances.4. The Ld. Special Counsel for the Revenue did not press on the issue of jurisdiction and submitted a report indicating the amount pertaining to Bolpur Commissionerate. The applicant was directed to deposit the entire duty amount for the period after June 1, 2007.5. After considering both sides, the Tribunal noted that the Revenue did not press on the jurisdiction issue. The Ld. Commissioner's findings mentioned the demand pertaining to Bolpur Commissionerate as Rs. 1,77,13,183. The Tribunal directed the applicant to deposit Rs. 1.00 crore within eight weeks, against the now calculated liability of Rs. 1.40 crores, with the balance dues waived and recovery stayed during the appeal's pendency.This detailed analysis of the judgment provides insights into the issues raised, arguments presented by both parties, and the Tribunal's decision regarding the waiver of pre-deposit of Service Tax and associated penalties.