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Issues: Application for waiver of service tax and penalties under various sections of the Finance Act, 1994 for engaging in Business Auxiliary Service without following statutory formalities.
Analysis: 1. The case involved an application for waiver of service tax and penalties under various sections of the Finance Act, 1994, amounting to Rs. 4,74,081/-, along with penalties under Sections 75A, 76, and 77, for engaging in Business Auxiliary Service without complying with statutory formalities, including payment of service tax. The applicants were involved in the re-rubberizing of lining of used pipes, and the department alleged non-compliance with service tax obligations. 2. The Tribunal found that there was a strong prima facie case for waiver of the service tax amount, except for Rs. 14,883/- invoiced after 16-6-05. Referring to a previous order in the case of Auto Coats v. CCE (ST), Coimbatore, the Tribunal held that activities undertaken for another person were brought under Business Auxiliary Service only from 16-6-2005. Therefore, the applicants were directed to deposit Rs. 14,883/- within four weeks, after which the balance amount of service tax, interest, and penalty would be waived, and recovery stayed pending the appeal. Failure to comply would result in the vacation of the stay and dismissal of the appeal. 3. The Tribunal set a deadline for compliance reporting on 26-5-2009. The order was dictated and pronounced in open court, emphasizing the importance of timely compliance with the directions provided to avoid adverse consequences in the appeal process.
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