Tribunal Grants Condonation & COD, Directs Predeposit, Stay on Recovery

The Tribunal allowed the condonation of a 4-day delay in filing the appeal and granted the COD application. Regarding the waiver of predeposit of service tax, the applicant was directed to predeposit a specific amount within eight weeks, with the remaining tax, interest, and penalty waived upon compliance. Recovery was stayed during the appeal process.

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Issues: Condonation of delay in filing appeal, waiver of predeposit of service tax.

Condonation of Delay:
The judgment addresses an application seeking condonation of a 4-day delay in filing the appeal. The Tribunal, after considering submissions and the COD application, finds sufficient reason to condone the delay. Consequently, the delay is condoned, and the COD application is allowed.

Waiver of Predeposit of Service Tax:
The applicant filed an application for waiver of predeposit of service tax amounting to &8377;68,15,907/-, including interest and penalty, for the period June 2005 to May 2008 under the category of "Manpower Recruitment or Supply Agency Service." The main contention raised was that the demand was on the salary paid to workers, which should not be included in the taxable service as it is a reimbursable expense. The applicant relied on a decision of the Hon'ble Delhi High Court. However, the learned AR argued that the Tribunal in a previous case held that consideration for taxable service remitted, including personnel remuneration and provident fund, should be part of the assessable value. The Tribunal found that the present case aligns with the previous Tribunal decision, which favored the Revenue. As a result, the applicant was directed to predeposit &8377;35,00,000/- within eight weeks, with the balance tax, interest, and penalty waived upon compliance, and recovery stayed during the appeal's pendency.

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