SQL STAR INTERNATIONAL LTD Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) This appeal, under Section 35-G of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994, is against the order of the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench at Bangalore (CESTAT) in ST/Stay/771/2010 in ST/1337/2010 dated 14.2.2011.

(2.) The Appellant, a public limited company engaged in the development of software, and providing IT services etc., is registered under the Finance Act, 1994 as a service provider of commercial training or coaching services. The Respondent issued show cause notice dated 23.10.2008 demanding Rs. 6,91,96,898/- as service tax towards various services allegedly rendered by the Appellant during the period 15.9.2003 to 31.12.2007. This amount included Rs. 5,39,13,757/- towards services allegedly rendered under the category "business auxiliary services" (BAS); Rs. 1,13,64,536/-towards "man power supply services"; Rs. 16,42,899/- towards "maintenance or repair services", and Rs. 22,75,707/- towards "management consultancy services". The service tax demanded was in relation to the project undertaken by the Petitioner, from 19.5.2003 to 18.5.2008, for the Madhya Pradesh State Agricultural Marketing Board for their e-Krishi Vipanan Project.

(3.) It is the Appellant's case that they did not collect service tax from their clients; the Respondent had passed the order on 31.12.2009, a copy of which was received by the Appellant on 31.3.2010, confirming the service tax demanded in the show cause notice; in addition, interest was levied under Section 75 of the Finance Act 1994; and penalty of Rs. 6,91,96,898/-, equal to the demand, was imposed in terms of Section 78 of the Finance Act. Aggrieved by the said order, the Appellant carried the matter in appeal to the CESTAT. They filed an application seeking waiver of pre-deposit of the entire service tax demanded, along with interest and penalty.