2010 (4) TMI 730

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....on, the appellant seeks waiver of pre-deposit and stay of recovery in respect of Service Tax of over Rs. 46 lakhs demanded by the Commissioner and equivalent amount of penalty imposed on them. We find that; during the period of dispute (1-7-2003 to 31-3-2006), the appellant had undertaken works contracts awarded by various agencies. They paid Sales Tax in the nature of 'works contract tax' to the ....

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....duced as a new taxable service under the Finance Act, 1994. In adjudication of the dispute, the ld.Commissioner dropped a major part of the demand and confirmed the rest of the demand of tax against the assessee after granting them abatement under the relevant Notification. Penalty equal to tax was also imposed on the assessee. Before the order was passed, the assessee paid Service Tax of over Rs.....

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....the Commissioner's order. He has particularly submitted that the appellant is liable to pay penalty relatable to the Service Tax which they paid on the Annual Maintenance Contract. In his rejoinder,"the ld.counsel submits that, in any case, the appellant cannot be called upon to pay, towards such penalty, anything more than 25 per cent of the penalty amount inasmuch as the Service Tax on AMC was p....

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....o the said date). The case law cited by the ld.counsel lends support to the appellant. No binding decision to the contra has been cited before us. In the circumstances, there will be waiver of pre-deposit and stay of recovery in respect of the amount of Service Tax demanded by the Commissioner.   5. An amount of over Rs. 6 lakhs was paid as Service Tax on AMC prior to adjudication of the c....