R. DEIVANDRAN Vs. CCE

JUDGEMENT

(1.) THIS application is for waiver of predeposit and stay of recovery in respect of service tax and penalty amounts. There is no representation for the applicant despite notice, nor any request for adjournment.

(2.) I have examined the records and heard ld.DR. It appears that the applicant did not pay service tax on taxable value of Rs. 1,81,600/ - for the service rendered by him in the category of "Rent -a -cab -scheme operator service" for the period April -August 2000 and December 2000 -October 2001. He was voluntarily paying this tax for other periods. It appears from the records that there was exemption from payment of service tax on the above service upto 31.3.2000 as also between 31.8.2000 and 1.12.2000. In other words, the tax was payable during the period of dispute. It further appears that the assessee is claiming under Explanation II to Section 67 of the Finance Act 1994, which permitted abatement of tax from the value of taxable service. Ld.DR submits that this Explanation was inserted in the statute book only w.e.f. 10.9.2004 and, therefore, the appellant cannot claim any benefit thereunder for the period of dispute. He submits that the Explanation has no retrospective effect. Apparently, there is no other defence for the appellant against the demand of tax. He has not made out prima facie case against the impugned order. Hence there will be a direction to the appellant to predeposit the tax amount of Rs. 9080/ -(Rupees nine thousands and eighty only) within 4 weeks from the date of receipt of this order and report compliance on 7.9.2007. In the event of due compliance, there will be waiver of predeposit and stay of recovery in respect of the penalty amount. (Dictated and pronounced in open court)