2009 (2) TMI 725 - AT - Service Tax

Summary

Issues involved: Stay petition against waiver of pre-deposit of Service Tax, Interest, and Penalties under various sections.

Summary:

Service Tax Liability on IUC Charges:
The appellant argued that out of the total duty confirmed, a demand of Rs. 4.48 crores on Interconnectivity Usage Charges (IUC) is covered by Tribunal decisions. Additionally, they claimed eligibility for Rs. 1.85 crores as Cenvat Credit. The remaining Rs. 1.63 crores, imposed on non-taxable services, was deemed debatable and challenged in its entirety.

Duty Liability on Non-Taxable Services:
The issue of Rs. 1.63 crores duty on non-taxable services like telex services, STD booth services, CCB collections, etc., was acknowledged for detailed examination during the final hearing.

Decision and Conditions Imposed:
After reviewing the records, it was noted that the Service Tax liability on IUC charges had been consistently decided in favor of the assessee by the Bench and other co-ordinate Benches. The applicants were directed to deposit Rs. 16,00,000 within eight weeks and report compliance by 1st May, 2009. Upon compliance, waiver of pre-deposit for the remaining amounts was granted, and recovery stayed pending appeal disposal. No coercive measures were to be taken by Revenue until the appeal resolution. The appeal was scheduled for final hearing on 1st June, 2009.