2011 (10) TMI 114 - AT - Service Tax

Service Tax liability - C& F Agent - business auxiliary services in respect of the activities of trading of tractors - lower authorities without considering the fact have confirmed the Service Tax in respect of entire consideration, including C & F commission - Held that matter is required to be remanded to the adjudicating authority for verification of the above facts - Stay petition and appeal gets disposed off.

Summary

Issues:
Delay in filing appeal, confirmation of Service Tax, business auxiliary services, C & F agents services, pre-deposit of tax, remand to adjudicating authority.

Delay in Filing Appeal:
The delay of 36 days in filing the appeal was attributed to the concerned person being on leave. The Bench, led by Archana Wadhwa, condoned the delay and allowed the COD application.

Confirmation of Service Tax:
A total Service Tax of Rs.3,08,218/- was confirmed against the appellants for providing business auxiliary services and trading of tractors between October 2004 and September 2008. The appellants were registered with the Service Tax department from 2007 onwards for C & F agent services, paying tax on those services. The lower authorities confirmed the Service Tax without considering the registration for C & F agent services. The appellants had paid approximately Rs. 2.26 lakh, but this fact was not presented before the original adjudicating authority due to non-appearance and adjournment requests.

Business Auxiliary Services and C & F Agent Services:
The appellants argued that the Service Tax confirmed on them included C & F commission under business auxiliary services, despite being registered for C & F agent services separately. The Bench agreed to dispense with the pre-deposit of the balance tax amount and decided to remand the matter to the adjudicating authority for verification of the facts presented during the appeal. The Bench clarified that the remand did not indicate an opinion on the case's merits, and the adjudicating authority would need to reevaluate the matter in accordance with the law.

Pre-Deposit of Tax and Remand:
With the consent of both parties, the Bench decided to proceed with the appeal without the pre-deposit of the balance tax amount. The stay petition and appeal were disposed of in this manner, with the decision pronounced in open court.

This judgment addressed the issues of delay in filing the appeal, confirmation of Service Tax, classification of services, pre-deposit of tax, and remand to the adjudicating authority. The Bench considered the appellants' arguments regarding their registration for C & F agent services and the need for a reevaluation of the case based on the presented facts.