VODAPHONE SOUTH LTD. Vs. COMMR. OF SERVICE TAX

JUDGEMENT

(1.) THIS is an application seeking waiver of pre -deposit of Service Tax of Rs. 4.71 Crores and equal amount of penalty imposed under Section 78 of the Finance Act, 1994.

(2.) AT the outset, the Ld. Advocate Shri Prasad Paranjape for the applicant submits that there was a mistake in reflecting the debit figure of service tax liability in their ST -3 Return for the period April, 2009 to September, 2009. He submits that the total service tax liability for the month of July was Rs. 9.51 Crores, education cess Rs. 19.03 Lakhs and Secondary and Higher Secondary cess Rs. 19.51 Lakhs, totaling to Rs. 9.80 Crores. He submits that the total amount of Service Tax, Education Cess and Secondary Higher Education Cess had been paid for the said month and it is not in dispute. However, while reflecting the said payments in the ST -3 Return, the amount debited towards Service Tax was wrongly shown as Rs. 4.56 Crores and Education Cess as Rs. 3.32 Crores. He submits that this error was rectified later by mentioning the correct opening balance in the subsequent ST -3 Return. He submits that even though all these details were submitted in their reply to the Notice, but due to some reason or the other, they could not appear before the adjudicating authority for personal hearing and explain the facts and figures, resulting into confirmation of the demand. He specifically undertakes that they would present before the Commissioner as and when called for hearing and explain in detail alongwith evidences to show that the short payment alleged in the show cause notice is because of incorrect entries posted in the ST -3 Returns and not due to non -payment of Service Tax. He prays that the matter may be remanded to the adjudicating authority.

(3.) AFTER hearing both sides for some time, we find that the appeal itself could be disposed off at this stage. Consequently, after waiving the requirement of pre -deposit we take up the appeal for disposal with the consent of both sides.