2007 (2) TMI 649 - AT - Service Tax

Summary

Issues involved: Application for waiver of pre-deposit of tax and penalty u/s 73 of Finance Act, 1994.

Issue 1: Maintainability of Show Cause Notice

The applicant argued that the Show Cause Notice issued u/s 73 of Finance Act, 1994 is not maintainable as they are deemed to be a person covered u/s 71A of the Act. The applicant relied on various decisions to support this claim. On the other hand, the respondent contended that the Service tax paid on self-assessment basis is valid under the liability arising from Section 71A of the Act. The Tribunal's decision in a similar case was cited by the respondent. After considering both arguments and examining the records, the Tribunal found that the case at hand pertained to recovery of Service tax u/s 73 of the Act, where the liability to file return is under Section 71A. The Tribunal concluded that the applicant had made a prima facie case for waiver of pre-deposit of tax and penalty, allowing the stay application and waiving the pre-deposit requirement until the appeal's disposal.