2010 (10) TMI 417 - AT - Service Tax

Waiver of pre-deposit - Tour Operator Services - The appellant was transporting of their employees from factory to residential premises - The letter dated 4-11-2009 cited by the learned Chartered Accountant and the letter dated 29-3-2010 cited by the learned Jt. CDR are in respect of the issue relates to service tax on transport of passengers on point to point basis and this issue is kept in abeyance till such time the matter is examined and suitable clarification issued by the Board - Find that in identical situation, this Bench had granted unconditional stay in the case of Vijayanand Travels Ltd. (supra) and listed the matter for final disposal on 18-4-2011 - Held that the application for waiver of pre-deposit of the amounts involved is allowed and recovery thereof stayed till the disposal of the appeal.

Summary

Issues: Stay petition for waiver of pre-deposit of service tax, interest, and penalties under various sections of the Finance Act, 1994 for the category of "Tour Operator Services" involving transport of employees.

Analysis:
1. The appellant filed a stay petition seeking waiver of pre-deposit of significant amounts related to service tax, interest, and penalties under different sections of the Finance Act, 1994. The demand arose due to the appellant's services falling under the category of "Tour Operator Services," primarily involving the transportation of employees from factory to residential premises.

2. The appellant's Chartered Accountant referred to a letter from the Ministry of Finance, Department of Revenue, dated 4-11-2009, addressing the removal of discrimination for transport operators with intrastate and interstate permits under the definition of a tour operator. Additionally, the Chartered Accountant highlighted a previous stay order granted by the Bench in a similar issue, providing unconditional stay in a specific case.

3. The Joint Commissioner of Central Excise presented a letter dated 29-3-2010 from the Ministry of Finance, Department of Revenue during the hearing. After considering the submissions from both sides, the Tribunal noted that the letters from 2009 and 2010 were related to the service tax on the transport of passengers on a point-to-point basis. The Tribunal also acknowledged the previous unconditional stay granted by the Bench in a similar matter.

4. Consequently, the Tribunal allowed the application for waiver of pre-deposit of the amounts in question and stayed the recovery until the appeal's final disposal. The appeal, along with similar cases, was scheduled for final disposal on a specified date. The decision was pronounced and dictated in court, ensuring the matter's progression for a comprehensive resolution.