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2014 (2) TMI 614 - AT - Service Tax


Issues: Waiver of pre-deposit of service tax and penalty amount in a case involving Service Tax liability on renting of immovable property.

Analysis:
The judgment delivered by the Appellate Tribunal CESTAT AHMEDABAD involved an application for the waiver of pre-deposit of service tax amounting to Rs.54,10,716/- along with an equivalent penalty. The issue at hand revolved around the Service Tax liability concerning the renting of immovable property, which had been contested by a retailers association in various forums and was also pending before the Hon'ble Apex Court in Civil Appeal No.8390/2011. The Hon'ble Apex Court had granted an interim stay, directing the retailers association to deposit 50% of the disputed amount in cash in three equal installments and provide a surety bond for the remaining 50% amount.

During the proceedings, it was highlighted that the appellant was a part of M/s Future Value Retail and M/s Pantaloon Retail (India) Ltd, and the Pantaloon Group, as a whole, had complied with the directions of the Hon'ble Apex Court by depositing the required amount and furnishing the necessary surety bond. Reference was made to a previous Stay Order dated 13.08.2012 in the appellant's own case, which was in a similar situation.

Considering the previous Stay Order issued for the same assessee on the identical issue, the Tribunal decided to grant the stay petition filed by the appellant based on the grounds that the appellant's group companies, namely M/s Future Value Retail and M/s Pantaloon Retail (India) Ltd, had fulfilled the requirements set by the Hon'ble Apex Court by depositing the amount and executing the surety bond as directed. Consequently, the Tribunal allowed the stay petition, thereby halting the recovery of the remaining amounts involved until the appeal was disposed of.

In conclusion, the judgment provided relief to the appellant by allowing the waiver of pre-deposit of the service tax and penalty amount, citing compliance by the appellant's group companies with the directives of the Hon'ble Apex Court as the basis for granting the stay.

 

 

 

 

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