UNITED COURIER Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE lower authorities demanded service tax of Rs. 3,80,806/ - from the appellant for the period Oct. '98 to Mar, '02 under Section 73 of the Finance Act, 1994 and also imposed penalties on them under Sections 76 and 78 of the Act. The present application seeks waiver of pre -deposit and stay of recovery in respect of these amounts. No representation for the appellants despite notice, nor any request of theirs for adjournment. I have examined the records and heard ld. SDR.

(2.) IT appears from the records that the assessee had admittedly collected service tax from their clients from Oct. '98 but did not remit the same to the public exchequer. The Memorandum of Appeal contains a lamentation that the appellant could not deposit the amount with the Government owing to "financial crisis due to general recession in business in the city due to bomb blast" and that there was also "mismanagement in the administration of their business due to illness of the Managing Partner's mother." There seems to be no challenge to the demand of service tax. It is, however, noticed that an amount of Rs. 1.3 lakhs was deposited by them towards the above demand before the Order -in -Original in this case was passed, The balance amount of admitted dues is Rs. 2,50,806/ -. Having regard to the plea of financial hardships raised in the Appeal Memorandum, I am asking the appellant to deposit only this amount. There will be waiver of pre -deposit and stay of recovery in respect of the penalty amounts. Accordingly, the appellant is directed to pre -deposit Rs. 2.5 lakhs (Rupees Two Lakhs and Fifty Thousands only) within a period of six weeks from the date of receipt of a certified copy of this order. Report compliance on 29 -12 -2005.