2007 (5) TMI 631 - AT - Service Tax

Summary

Issues involved:
The issues involved in this case are the demand of Service Tax on "Port Services" and "Business Auxiliary Service" u/s 73(1) of the Finance Act, 1994, for the period 16-7-2001 to 30-9-2005, and the plea of double taxation raised by the appellants regarding the services rendered as sub-contractors of various agencies.

Port Services Tax Demand:
The impugned order demanded Service Tax on "Port Services" directly rendered by the appellants, amounting to over Rs. 9 lakhs. The Tribunal found no grounds for waiver of pre-deposit and stay of recovery for this demand, citing a previous case precedent.

Sub-contractor Services Tax Demand:
Regarding the demand of Service Tax on services rendered by the appellants as sub-contractors of 9 agencies, the appellants argued against double taxation. They referred to departmental clarifications and a Tribunal decision to support their claim that the main service providers should be liable for the Service Tax. The Tribunal directed both parties to produce show-cause notices issued to the 9 stevedore agents within 2 months to verify the plea of double taxation.

Conclusion:
The Tribunal did not grant waiver of pre-deposit and stay of recovery for the demand of Service Tax on "Port Services" directly rendered by the appellants. However, they directed both parties to provide necessary documents to ascertain the plea of double taxation raised by the appellants regarding the services rendered as sub-contractors. The appeal was scheduled for final disposal on 23-7-2007, with a waiver of pre-deposit and stay of recovery until then.