2009 (10) TMI 665 - AT - Service Tax

Summary

Issues:
- Stay petition for waiver of predeposit of service tax and penalties
- Whether charges for supplying extra copies of documents are part of 'Steamers Agents Service'
- Financial hardship due to deposit amount causing undue hardship

Analysis:
1. The appellants filed a stay petition seeking waiver of predeposit of service tax and penalties amounting to Rs. 12,43,163.00. The demand was confirmed based on the argument that the appellants, providing 'Steamers Agents Service,' were charging for supplying extra copies of additional documents to customers, such as bill of lading, which the Revenue considered as part of the service. The appellants, however, contended that the charges for extra copies were not part of the service but were for documentation support services. They argued that the demand was not sustainable as the supply of extra copies falls under a different service category that came into effect after the demand period.

2. The Revenue's position was that the charges for extra documents were indeed part of the services provided by the appellants under 'Steamers Agents Service.' The Revenue maintained that the documentation fee was directly related to the service provided and, therefore, justified the demand made. The Tribunal noted that the demand was confirmed using the extended period of limitation and acknowledged that the appellants did receive documentation charges for supplying extra copies of documents to customers availing the 'Steamers Agents Service.'

3. After considering both sides, the Tribunal found that the case did not warrant a total waiver of predeposit. Consequently, the Tribunal directed the appellants to deposit a reduced amount of Rs. 4.00 lakhs within eight weeks. Upon this deposit, the predeposit of the remaining service tax, interest, and penalties would be waived, and the recovery of the same stayed during the appeal's pendency. The compliance reporting date was set for December 19, 2009.

In conclusion, the Tribunal partially granted the stay petition by reducing the predeposit amount and providing conditions for the waiver and stay of recovery of the remaining service tax, interest, and penalties. The decision was based on the distinction between the charges for extra copies of documents and the core 'Steamers Agents Service,' ultimately finding that the appellants were liable for a partial predeposit to continue the appeal process.