Service Tax - Educational Society - Pre-Deposit - SLP Dismissed by SC
THE petitioner which is a society registered under the provisions of the Registration of Societies Act, 1860, has been operating educational institutions and imparting education through Junior Colleges and Coaching centers.
Commissioner of Service Tax, passed an Order in Original dated 11.06.2009 confirming the demand of Service Tax on the income received by the petitioner for the period 01.04.2003 to 31.03.2007 under the head of "Commercial Training or Coaching Services". The Tax demanded was over Rs. 87 Crores and the penalty imposed was Rs. 150 Crores apart from other penalties.
The CESTAT by its order reported in 2010-TIOL-1306-CESTAT-BANG granted unconditional stay and total waiver of pre-deposit.
Against the above CESTAT order, the Revenue approached the Andhra Pradesh High Court, which in its order reported in remanded the case back to the CESTAT.
The CESTAT passed a fresh order on 18.4.2011 maintaining the full waiver of pre-deposit granted to the petitioner and staying the recovery till the disposal of the appeal. (2011-TIOL-661-CESTAT-BANG)
The Department again questioned this order before the High Court, which set aside the order of the CESTAT and ordered pre deposit of Rs. 80 Crores, which is about 1/3rd of the Tax and Penalty. ()
This time, the party went in appeal to the Supreme Court. The Supreme Court by its order dated 6.1.2012 reported in reduced the pre-deposit to one third of the tax - that is about Rs. 29 Crores. The assessee complied with this order.
Now comes the demand for the subsequent periods 2007-08, 2008-09, 2009-10 and 2010-11 for which two orders were passed by the Commissioner demanding a tax of Rs. 69 Crores and Rs. 13 crores.
This was also challenged before the CESTAT which by its order reported in 2013-TIOL-1375-CESTAT-BANG directed pre-deposit of Rs. 25 crores.
The assessee filed a modification petition against the above order which the Tribunal by its order reported in rejected.
The assessee again approached the High Court, which did not consider the petition and permitted the assessee to remit the pre-deposit amount of Rs.25 Crores in two instalments, the first instalment of Rs.15 Crores payable on or before 4.10.2013 and the balance of Rs.10 Crores on or before 4.11.2013. ().
Against the High Court order the assessee approached the Supreme Court in SLP. The Supreme Court on Friday last dismissed the SLP No. 32537/2013, but gave time up to 31 December 2013 to make the pre-deposit.
It seems the battle for the subsequent period is now in CESTAT.