2014 (10) TMI 451 - AT - Service Tax

CESTAT Kolkata: Waiver of Service Tax Pre-Deposit Granted

The Appellate Tribunal CESTAT Kolkata granted the appellant's application for waiver of pre-deposit of Service Tax and penalty. The Tribunal found that ... Waiver of pre-deposit of Service Tax - Cable Operator Service - Small scale exemptions - Use of brand name of other operator - Notification No. 6/2005 - Held that:- Prima facie we find that the applicants are not using the brand name of other cable operator but only distributing various TV Channels like Sony, ESPN, Star, ZEE, UTV using their own cable network. In these circumstances, the applicants are able to make out a prima facie case for total waiver of pre-deposit. Accordingly, all dues adjudged is waived and its recovery stayed during the pendency of the appeal - Stay granted. Issues: Application for waiver of pre-deposit of Service Tax and penalty.In this judgment by the Appellate Tribunal CESTAT Kolkata, the issue at hand was an application seeking waiver of pre-deposit of Service Tax amounting to Rs. 84,654 and an equal penalty. The appellant, represented by Shri Tapan Kr. Chakraborty, argued that during the relevant period from April 2008 to March 2010, they provided services classified under 'Cable Operator Service.' The appellant contended that their gross taxable value received was below the exemption limit of Rs. 10.00 Lakhs as per Notification No. 6/2005, thereby asserting they were not liable to pay any Service Tax. The demand against them was based on the alleged use of the brand name of other cable service operators, which the appellant denied, stating they provided services under their own name without utilizing other operators' brand names.The ld. AR for the Revenue supported the findings of the ld. Commr. (Appeals) and acknowledged that the appellant had distributed the cable network of various TV channels like Doordarshan, Sony, ESPN, Star, ZEE, UTV during the relevant period. The ld. AR also admitted that the exemption limit under Notification No. 6/2005 was Rs. 10.00 Lakhs during that time. The Tribunal observed that the appellant was not using the brand name of other cable operators but was merely distributing various TV Channels through their own cable network. Consequently, the Tribunal found that the appellant had established a prima facie case for the total waiver of pre-deposit. As a result, all dues were waived, and the recovery of the amount was stayed during the pendency of the appeal. The order was pronounced in the open Court, granting the relief sought by the appellant.