ACE CREDIT Vs. COMMISSIONER OF C. EX., MANGALORE

JUDGEMENT

(1.) THE appellant is required to pre -deposit Service Tax of Rs. 54,909/ -. The appellants have already pre -deposited an amount of Rs. 28,539/ -. For the balance of the Service Tax and penalties, they are seeking waiver in the matter. The department has proceeded for recovery on short levy of service tax for the period 1 -7 -2003 to 9 -9 -2004 and a show cause notice was issued on 9 -8 -2005. The appellants pleaded time bar as all the facts were known to the department. They were carrying on the business as Direct Sales Agent of various banks. The department has proceeded to cover them under Business Auxiliary Services The same was challenged on various grounds including time bar. However it was not accepted. Learned counsel seeks for waiver for the balance of pre -deposit on the ground that party has got a strong case on merits as well as on time bar.

(2.) HEARD learned DR, who reiterated the departmental contentions.

(3.) WE have carefully considered the submissions made by both sides. The demands for short levy should have been issued within the period of limitation. The same has been issued beyond the period of limitation even when all the facts were known to the department. Prima facie the appellants have a strong case. They have already pre -deposited more than 50% of the amount. Hence waiver for the balance amount is accepted. Stay application is allowed granting waiver for the balance amount and staying its recovery. Appeals to come up for hearing in its turn.