Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2014 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 670 - MADRAS HIGH COURTWaiver of pre deposit - Service received in India or outside India - Whether the Tribunal was justified in not granting waiver of pre-deposit when there is no service received in India so as to attract the provisions of Section 66A of Finance Act, 1994 and Rule 3 of the Taxation of Services (Provided from outside India and Received in India) Rules, 2006 - Held that:- It is the specific case of the appellant that even as per the statement of Revenue, the services in this case was rendered outside India and there is no element of service received in India and therefore Section 66A of Finance Act, 1994 and Rule 3 of the Taxation of Services (Provided from outside India and Received in India) Rules, 2006, do not apply to the facts of the present case. However, the Department also rely upon Section 65(96a) of the Finance Act, 1994, which defines the term "Ship Management service" and those services are taxable once the recipient is located in India and the provider is located outside India and therefore the question of taxable event does not arise in the case of services rendered outside India by an agent outside India. There are two important expressions in Section 35-F. One is undue hardship. This is a matter within the special knowledge of the applicant for waiver and has to be established by him. A mere assertion about undue hardship would not be sufficient. It was noted by this Court in S. Vasudeva v. State of Karnataka, (1993 (3) TMI 350 - SUPREME COURT OF INDIA) that under Indian conditions expression undue hardship is normally related to economic hardship. Undue which means something which is not merited by the conduct of the claimant, or is very much disproportionate to it. Undue hardship is caused when the hardship is not warranted by the circumstances. Order of Tribunal is modified that the Tribunal was not justified in ordering the pre-deposit in the manner stated in its order dated 10.6.2013; however, assessee is directed to make a pre-deposit of ₹ 50,00,000 towards pre-deposit on or before 8.8.2014 and subject to such compliance, as stated in the order of the Tribunal dated 10.6.2013, the pre-deposit of balance amount demanded shall remain waived and its collection shall stand stayed during the pendency of the appeal before the Tribunal - Conditional stay granted.
|