ORDER
S.L. Peeran, Member (J)
1. The appellant is required to pre-deposit Service Tax amount of Rs. 56,88,806/- including Education Cess besides penalties under various sections on the services of Security Agencies carried out by them during the period October 2000 to September 2005. They have pre-deposited Rs. 28,21,258/- lakh and have prayed for waiver for the balance duty amount Rs. 28,67,548/- and penalties. The appellants contention is that they are eligible for several deductions in respect of certain type of activities which do not come within the ambit of Service Tax like maintaining of gardens, horticulture, utilization of drivers and cooks in the services. Although they had made their pleas along with evidence, the Commissioner has not considered the same. They have stated that they were holding bonafide belief with regard to the exemption available to them and therefore, the demands are also barred by time. The appellants have now produced Income Tax Returns to show that the appellant is a very small unit and the total income from business of profession is Rs. 6,71,853/- and have no amounts to deposit the balance. Hence, they pray for waiver of the balance amounts including penalties.
2. The learned JDR opposes the prayer and submits that their liability to pay Service Tax is very clear on the record. The question of holding bonafide belief does not arise, as they were covered under the category of ‘Security Services’. He submits that they should pre-deposit the amounts in the interest of revenue. He further submits that Revenue has also recovered fake bills issued by them which have been recovered from the service receiver.
3. We have carefully considered the submissions. We notice that the admitted liability of Rs. 28.21 lakh has been deposited. As regards the balance amount, they pray for waiver on the ground that certain elements are not includable. However, the exact amounts which are liable for deduction have not been worked out by them. They have filed Income Tax returns to show that they are faced with severe financial hardship. Taking into consideration the overall facts and circumstances of the case, we direct the appellants to pre-deposit an amount of Rs. 10,00,000/- (Rupees Ten Lakh Only) within a period of four months from today either in one payment or in installment. On failure to comply with the terms of the stay order will entail dismissal of the appeal. On such deposits, the balance of duty and penalties stands waived and recovery stayed till the disposal of the appeal. Call on to report compliance on 9th May 2008.
(Pronounced and dictated in open Court)