SEMAC LTD. Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THIS stay petition is filed for the waiver of the pre -deposit of the amount confirmed by the Adjudicating Authority as service tax due and consequent penalties and interest, which has been upheld by the ld. first appellate authority.

(2.) After hearing both sides on the stay petition, we find that the issue being in a narrow compass, the appeal itself could be disposed off, hence after allowing the application for waiver of pre -deposit of amounts involved, we take up the appeal for disposal.

(3.) THE relevant facts that arise for consideration are that the Appellant herein is providing taxable service under the category of 'consulting engineers service' and has taken the registration from the Department for discharge of service tax liability in accordance with law. During the scrutiny of the records of the Appellant, it was noticed that the Appellant has failed to discharge the service tax of Rs. 11,02,347/ - on the value of taxable services realized by them from one M/s. Chandavarkers and Thackers Pvt. Ltd. Coming to such conclusion, authorities issued a show -cause notice dt. 27 -8 -2002 demanding the amount of service tax of Rs. 11,02,347/ - and proposing for imposition of penalty and recovery of interest. The Appellant contested the show -cause notice on the ground that services provided by them are in respect of the services to main consultant who has discharged the service tax liability on the entire amount billed by him to his clients. Adjudicating Authority did not agree with the propositions and confirmed the demand and also imposed consequent penalties and interest. On an appeal, ld. Commissioner (Appeals) also came to the same conclusion.