2009 (9) TMI 733 - AT - Service Tax

Summary

Issues: Application for waiver of pre-deposit of service tax, liability of Goods Transport Agency, exemption on 75% of freight amount

In this judgment by the Appellate Tribunal CESTAT CHENNAI, the issue at hand was the application for waiver of pre-deposit of service tax amounting to Rs. 32,252/- along with interest and penalty. The tax was confirmed on the assessees on the grounds that they had provided services as a Goods Transport Agency. The assessees contended that they supplied Superior Kerosene Oil (SKO) for sale through the public distribution system to holders of family cards and thus should not be liable to tax. However, the tribunal found this plea untenable due to the absence of any exemption in such cases. Nevertheless, the tribunal acknowledged the plea that the assessees were eligible for exemption from payment on 75% of the freight amount, citing a previous order-in-original in their favor. The tribunal directed a pre-deposit of Rs. 10,000/- towards service tax within four weeks, with the balance tax and penalty waived upon such deposit. Failure to comply would result in the vacation of stay and dismissal of the appeal without prior notice. The compliance deadline was set for 6-11-2009.