GLOBAL SOFTWARE LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) For the purpose of hearing this appeal, the appellants are required to pre -deposit the balance amount of service tax of Rs. 5,60,189/ -out of the total service tax of Rs. 6,40,680/ - and interest of Rs. 5,60,189/ - under Section 75 of the Finance Act, 1994 apart from penalty of Rs. 5,60,169/ - imposed in terms of Section 76 ibid. The appellants by this application, pray for waiver of pre -deposit of the amounts.

(2.) Shri R. Parthasarathy, learned Consultant appearing for the appellant submitted that the assessee is a registered service tax assessee under "Management Consultancy Service" and are paying service tax and there is no dispute about the same. The dispute is about the service provided by the appellants by way of imparting training in various software syllabi to individuals as well as to corporate sponsored candidates. He submits that the training in those areas provided by the appellants do not come within the term "Management Consultancy" and is therefore not subject to service tax. He has also invited my attention to CBEC Circular No. 59/8/2003 -S.T., dated 20 -6 -2003 whereby if has been clarified by the Board that services in relation to vocational training institute, computer training institute, and recreational training institute would not be chargeable to service tax. He therefore, prayed for waiver of the amounts involved till the disposal of the appeal. He has also submitted that the appellants are facing acute financial problems as they have incurred huge loses. He therefore, prayed for waiver of the amounts involved till the disposal of the appeal.

(3.) I have considered the submissions made before me by both the sides. I observe that the dispute is relating to the service provided in the areas of training/courses by the appellants in relation to LAN/VAN/SAN Engineering, Net work engineering and System Management, Sun Solaris administration etc. The contention of the appellant is that specialised courses conducted on topics of information technology, both software and hardware, were more in the nature of imparting service relating to education and the appellants have not collected any service tax in respect of the course fee which they had collected. This question will be examined at the time of final hearing of the appeal. Prima facie it cannot be said that the appellants have made out a good case in their favour. At the most it can be said that they have an arguable case. In the facts and circumstances of the case including the plea of financial hardship. I hold that interests of justice would be met if they are directed to make a pre -deposit of Rs. 1.50 lakhs (Rupees one lakh and fifty thousand) within a period of two months and report compliance, subject to which pre -deposit of the balance amounts is waived and recovery thereof stayed during the pendency of the appeal, and I order accordingly. To report compliance on 24 -9 -2004. (Dictated and pronounced in open Court)