P.S. MURUGESAN Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) WE have heard both sides on the application for waiver of predeposit of service tax of Rs. 3,56,322/ - together with interest and penalty of equal amount under Section 76, penalty of Rs. 1000/ - under Section 77 and penalty equal to tax under Section 78 of the Finance Act, 1994. The service tax demand has been confirmed as a result of holding that the applicants are liable to pay service tax on payments to workers such as wages, bonus, incentives contribution to provident fund etc.

(2.) WE find that strong prima facie case has been made out by the applicant in the light of the Tribunal's decision in Sangamitra Services Agency v. CCE, 2007 (8) S.T.R. 233 and Malabar Management Services v. CST : 2008 (9) S.T.R. 483. The pre -deposit of the tax together with interest and penalty is therefore dispensed with and recovery thereof stayed until the pendency of this appeal.