2008 (7) TMI 347 - AT - Service Tax

Tribunal Grants Waiver and Stay, Emphasizes Fair Hearing Process

The Tribunal granted waiver for the balance amount and penalties to the appellants, considering their financial hardship. The stay application was ... Demand under the category of (a) Cable Operator, (b) MSO (Multi System Operators), and (c) Advertisement Agency - assessee did not contest the case on merits but they raised the submissions that they have not collected duty from the customers due to ignorance of law – appellant pleads financial hardship to deposit the balance of the amount. He submits that there are extenuating circumstances not to levy penalty in the present case and therefore he prays for waiver - plea of financial hardship is accepted – stay granted Issues involved:1. Waiver of balance amount and penalties confirmed in the matter.2. Consideration of financial hardship for depositing the balance amount.3. Levying penalty in the present case.4. Stay application and recovery of balance amount.Analysis:1. The appellants had pre-deposited a partial amount out of the total demanded sum and sought waiver for the balance amount and penalties confirmed. The demands were related to services provided as a Cable Operator, MSO, and Advertisement Agency. The Commissioner noted the appellant's failure to contest the case on merits but rejected their plea of not collecting duty from customers due to ignorance of the law. Despite financial hardship, the appellants requested a waiver of the remaining amount.2. The Counsel representing the appellants pleaded financial hardship as a reason for not being able to deposit the balance amount. They argued for extenuating circumstances to avoid the levy of penalties. On the other hand, the Departmental Representative contended that penalties should be imposed and insisted on pre-depositing the outstanding amount.3. After considering the submissions, the Tribunal acknowledged that the appellants had already deposited a substantial sum. Given the plea of financial hardship, the Tribunal accepted the request for waiver of the balance amount and penalties. Consequently, the stay application was allowed, halting the recovery of the remaining amount until the appeal's disposal, even beyond the typical 180-day period. The appeal was scheduled for a future hearing.4. The judgment was pronounced and dictated openly in court, reflecting the Tribunal's decision to grant waiver for the balance amount and penalties, considering the financial circumstances presented by the appellants. The stay on recovery was extended until the appeal's resolution, emphasizing the importance of a fair hearing process.