T. SURESH Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THE appellant was directed to predeposit the service tax amount (Rs. 23,800/ -) and report compliance today vide Stay Order No. 1005/07 dated 05.10.2007 which was passed ex parte. He has not deposited the amount. On the other hand, he has applied for modification of the above order and for waiver of predeposit on two grounds viz. (a) that a major part of the demand is barred by limitation; (b) that he is not in a position to make any deposit due to financial hardships. It is submitted by his counsel today that he is not even able to pay the counsel's fee. I have heard learned SDR also. After re -examining the records and considering the submissions of both sides, I note that the above demand of service tax for the period April, 2002 to January, 2004 was raised in a show -cause notice issued on 20.09.2004 which did not allege the requisite facts to invoke the larger period of limitation under Section 73 of the Finance Act, 1994. It is submitted by counsel that only a small part of the above period is comprised in the normal period of limitation under Section 73 ibid and that the amount of service tax relatable to such period is only Rs. 8,159/ -. It is submitted that the appellant is ready to pay this amount. However, it is prayed that the appellant be exonerated from penalties. SDR is not prepared for final arguments in the appeal.

(2.) IN the aforesaid circumstances, I recall the earlier stay order and direct the appellant to predeposit an amount of Rs. 8,000/ - (Rupees Eight Thousand only) within 4 weeks and report compliance on 04.01.2008. In the event of due compliance, there will be waiver of predeposit and stay of recovery in respect of the penalties and the balance amount of service tax.