ORDER
P.G. Chacko, Member (J)
1. This application is for waiver of predeposit and stay of recovery in respect of an amount of service tax of Rs. 1,71,549/- demanded from the appellants by the lower authorities for the period September 1999 to May 2004 as also in respect of penalties totaling to Rs. 1.6 lakhs.
2. After examining the records and hearing both sides, I find that the above demand is on certain amount reimbursed to the appellants by the service recipient towards fixed expenses for supply of human resources in terms of Article 6 of the relevant Agreement. The same provision of the Agreement had also enabled the appellants to receive a consolidated fixed commission of Rs. 20,000/- per month from the service recipient. On this commission, received during the above period, the appellants paid tax. According to the Revenue, they should have paid tax on the fixed expenses reimbursed to them also. It appears from the records that these expenses for supply of human resources amounted to Rs. 45,703/- per month, being the total monthly remuneration payable to the personnel deputed to the appellants by the service recipient. Ld. JCDR submits that these expenses are not fixed and these vary from month to month. This submission does not appear to be factually correct inasmuch as the total remuneration per month stands fixed at Rs. 45,703/- per month for reimbursement under Article 6 of the Agreement. In any case, the appellants have made out pima facie case against predeposit of the adjudged dues on the strength of an earlier order of this Bench in a similar case viz. Sangamitra Services Agency v. CCE Chennai IV 2006 (1) S.T.R. 278 (Tri.-Chennai). Accordingly, there will be waiver of predeposit and stay of recovery in respect of the amounts of tax and penalties.
(Dictated and pronounced in open Court)