SHRIVARI ENTERPRISES Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) This Civil Miscellaneous Appeal is filed by the assessee as against the order of the Customs, Excise and Service Tax Appellate Tribunal raising the following substantial questions of law:

(2.) The appellant-company, which is an outsourcing agency, is engaged in the activity of verification and collection activity on behalf of various banks/financing companies. The verification activity includes verification of the credentials such as address, work place, tele verification residence etc. of the loan applicants of the banks and finance companies and assist the bank in evaluating the loan applicant. According to the Adjudicating Authority this activity of the appellant is covered under the category 'Business Auxiliary Service'. The appellant has also obtained service tax registration for providing the said service to the bank/finance companies. Based on the intelligence gathered that the appellant had evaded payment of service tax by way of suppression of the actual value of service rendered, a show cause notice was issued to the appellant dated 27.04.2007 proposing to demand service tax for the period from 1.7.2003 to 31.3.2006 to the tune of Rs. 97,01,230/-. For the subsequent period, i.e., 1.4.2006 to 31.3.2007, 1.4.2007 to 31.3.2008 and 1.4.2008 to 31.3.2009, the appellant was asked to submit details of the amount billed, amount realised and the amount paid towards service tax and education cess. The appellant was also asked to file ST3 returns. After repeated letters and summons, the appellant provided all the details asked by the Adjudicating Authority. From the details produced, the Adjudicating Authority found that the appellant had contravened the provisions of Sections 67, 68 and 70 of the Finance Act as they had not paid service tax on the gross value of taxable service and also failed to file ST3 returns on due dates. Hence, the Adjudicating Authority demanded service tax under Section 73(1) of the Finance Act, 1994 together with interest and penalty. Aggrieved by the order of the Adjudicating Authority, the appellant filed an appeal before the Tribunal along with an application for waiver of pre-deposit.

(3.) The Tribunal, by order dated 01.01.2014, following the earlier order dated 29.2.2008 in respect of the appellant's own case, directed the appellant to deposit an amount of Rs. 56,00,000/- within a period of eight weeks and report compliance by 05.03.2014. Since the appellant has not deposited the said amount within the stipulated period, the Tribunal dismissed the appeal for non-compliance of the order. Aggrieved by the said order of the Tribunal, the appellant is before this Court.