TITAN INDUSTRIES LTD. Vs. CST

JUDGEMENT

(1.) HEARD both sides on the application for waiver of predeposit of service tax of Rs. 2,39,34,843/ - together with interest and penalty of equal amount.

(2.) THE applicants are providers of 'Maintenance and Repair Services', who had taken service tax credit on input services such as Courier, Telephone, Advertisement, Travel Agent Service, Photography Service, Security Tour Operator Service, Mandap Keeper Service etc., during the period July 2003 to September 2004. The department was of the view that since the assessees had neither centralized billing system nor centralized accounting system in their factory premises at Hosur, they had mis -declared the facts and got registered centrally at SIPCOT Industrial Complex, Hosur. The department alleged violation of Rule 4(2) & 4(3)(a) of Service Tax Rules, 1994. Moreover, the Department was of the view that none of the services on which service tax credit had been taken could be treated as input services as they were not used in or in relation to the output service. The extended period of limitation was invoked against the assessees on the ground that they had not provided the list of all accounts and details of credit taken, including the details of input services and had only filed the returns with total abstract without any individual breakups of the input service details.

(3.) WE find that, in respect of the services on which tax was paid and credit availed, they have not been able to satisfy that any of such services were received and consumed in or in relation to rendering of maintenance and repair service at their service centres. Therefore, no prima facie case for total waiver has been made out on the merits of the issue. As regards the plea of time bar, we find that, prima facie, as per Rule 5(2) of the Service Tax Rules, 1994, the assessees shall furnish to the Superintendent of Central Excise at the time of filing returns for the first time, a list of all accounts maintained in relation to service tax. As per Sub -rule 4 of Rule 5 of the Service Tax Credit Rules, 2002, the assessees were also required to file the details of credit taken i.e., date and number of document on which credit is availed, details of input service provider and details of input service and credit taken. The assessees however, have not given any documents or details with individual break -up of the input service credit availed/nature of service/individual invoice details etc., and hence, prima facie larger period of limitation is available to the department as the assessees had prima facie suppressed the nature of the services on which service tax credit was availed.