DECCAN SECURITY SERVICES Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THESE are two applications filed by the appellants. We have considered the prayer for condoning delay of 12 days in filing the subject appeal. After hearing both sides, we are satisfied that the appellants were prevented by sufficient cause in filing the appeal in time. Accordingly we condone the delay and allow the COD application.

(2.) THE stay application seeks waiver of pre -deposit of Service tax of Rs. 4,22,156/ - and Education Cess of Rs. 28,407/ - found due from the appellants towards security service rendered by them during the period from 1 -10 -1999 to 31 -10 -2004. The impugned order confirmed demand of Service tax as well as equivalent penalty imposed on the appellants under Section 78 of Finance Act, 1994. We have heard both sides. There is no dispute that the appellants had rendered taxable service during the material period. The appellants were registered with the Department as provider of taxable service on 11 -12 -2002 but did not discharge tax liability even subsequent to that date. The appellants' case is that they failed to discharge the tax on account of ignorance of the tax liability. We find that this plea had not been canvassed before the lower authority. In the circumstances, we find that the appellants have not made out a prima facie case for granting complete waiver of dues. Considering the deposit of Rs. 13,602/ - already made by the appellants, we order that the appellants to pre -deposit a further amount of Rs. 2,00,000/ - (Rupees Two lakhs only) within a period of three weeks from today and report compliance on 9th November, 2009. On reporting such compliance, there shall be waiver of pre -deposit of balance dues and stay of recovery thereof pending decision in the appeal.