Hoganas India Limited Vs. Commissioner of C. Ex. and Cus. - Court Judgment

Excerpt:
1. as the applicants have asked for a decision on merits we heard the learned dr and perused the records.2. service tax of rs. 49,147/- has been confirmed upon the applicants herein on the ground that during the period 9-7-2004 to 28-2-2005 they had processed goods on behalf of their clients and were hence liable to service tax under the heading 'business auxiliary services'. penalty of amount equal to service tax has also been imposed.3. the plea raised by the applicants, that they were only processing the goods 'for a client' and not 'on behalf of a client' and that processing of goods for a client become liable to service tax by widening of definition of 'business auxiliary services' only w.e.f.16-6-2005 which is subsequent to the period in dispute, is debatable.no prima facie case for total waiver has been made out.4. we, therefore, direct pre-deposit of rs. 25,000/- towards service tax within a period of four weeks from the receipt of this order and on such deposit pre-deposit of the balance amount of service tax and penalty imposed upon the applicants stands waived and recovery thereof stayed pending the appeal.5. failure to comply with the above direction shall result in vacation of stay and dismissal of appeal without prior notice.

Judgment:
1. As the applicants have asked for a decision on merits we heard the learned DR and perused the records.

2. Service tax of Rs. 49,147/- has been confirmed upon the applicants herein on the ground that during the period 9-7-2004 to 28-2-2005 they had processed goods on behalf of their clients and were hence liable to service tax under the heading 'Business Auxiliary Services'. Penalty of amount equal to service tax has also been imposed.

3. The plea raised by the applicants, that they were only processing the goods 'for a client' and not 'on behalf of a client' and that processing of goods for a client become liable to service tax by widening of definition of 'Business Auxiliary Services' only w.e.f.

16-6-2005 which is subsequent to the period in dispute, is debatable.

No prima facie case for total waiver has been made out.

4. We, therefore, direct pre-deposit of Rs. 25,000/- towards service tax within a period of four weeks from the receipt of this order and on such deposit pre-deposit of the balance amount of service tax and penalty imposed upon the applicants stands waived and recovery thereof stayed pending the appeal.

5. Failure to comply with the above direction shall result in vacation of stay and dismissal of appeal without prior notice.