2007 (6) TMI 528 - AT - Service Tax

Summary

Issues involved: Whether the appellant is required to pre-deposit service tax amount and penalty under Section 78 of the Finance Act for providing 'Contract Carriages' services, which the Department has treated as falling under 'Tour Operators Service'.

Summary:

Issue 1: Pre-deposit of service tax amount and penalty
The appellant was directed to pre-deposit service tax amount and penalty under Section 78 of the Finance Act, along with an additional penalty under Section 77. The Department categorized the appellant's services as 'Tour Operators Service', while the appellant claimed to be only Contract Carriers. The appellant relied on the definition of 'Tour Operators' in Motor Vehicles Rules and cited a previous Tribunal judgment in support. The Tribunal, considering the submissions, found the issue to be covered by the cited judgments. Consequently, the stay application was granted, waiving the pre-deposit amounts and staying their recovery until the appeal's disposal. The appeal was scheduled for an expedited out-of-turn hearing on a specified date.

End of Summary