2013 (1) TMI 404 - AT - Service Tax

Goods Transport Agency service - denial of benefit of Notification No. 34/2004-ST dated 03.12.2004 - Held that - As in respect of the very same assessee, for the subsequent period the very same first appellate authority has held that the appellant is eligible for the benefit of Notification No. 34/2004-ST. Finding strong force in the contentions raised by the Chartered Accountant that in respect of an identical issue, in the case of Essel Mining & Industries Limited 2009 (6) TMI 386 - CESTAT, KOLKATA the coordinate bench of the Tribunal has granted an unconditional stay where the gross amount charged by the service provider is Rs. 1500/- or less - appellant has made out a case of the waiver of pre-deposit of amounts involved.

Summary

Issues Involved:
1. Stay petition for waiver of pre-deposit of service tax liability amount.
2. Interpretation of Notification No. 34/2004-ST for Goods Transport Agency service.
3. Discrepancy in decisions by the same appellate authority for the same appellant.
4. Comparison with a similar case and grant of unconditional stay.

Analysis:

1. The appellant filed a stay petition seeking the waiver of pre-deposit of Rs. 70,606/-, confirmed as service tax liability with interest and penalties under the Finance Act, 1994. After hearing both sides and examining the record, the Tribunal considered the request for waiver.

2. The key issue in this case revolved around the Goods Transport Agency service utilized by the appellant for transporting sand to their premises through truck owners. The appellant argued that the individual transporters charging for sand transportation could qualify for the benefits of Notification No. 34/2004-ST dated 03.12.2004. The appellant's Chartered Accountant highlighted a discrepancy where the same appellate authority had previously granted the benefit of the notification to the appellant for a subsequent period but denied it in this case.

3. Upon reviewing the records and the order in appeal No. 371/2012/Commr(A)/RBT/RAJ dated 21.06.2012, the Tribunal noted the contradictory decisions made by the same Commissioner (Appeals) regarding the appellant's eligibility for the notification. Additionally, the Tribunal considered a precedent set by the Tribunal in the case of Essel Mining & Industries Limited, where an unconditional stay was granted for cases where the gross amount charged by the service provider was Rs. 1500/- or less. The Tribunal acknowledged the appellant's argument and found merit in their case for the waiver of pre-deposit.

4. In light of the discrepancies in the appellate authority's decisions, the Tribunal granted the application for the waiver of pre-deposit of amounts involved and stayed the recovery until the appeal's disposal. This decision was influenced by the appellant's case aligning with the precedent set by the Tribunal in a similar matter, emphasizing the importance of consistency and fairness in judicial decisions.

This analysis highlights the Tribunal's thorough consideration of the issues raised by the appellant, the interpretation of relevant legal provisions, and the application of precedents to ensure a just outcome in the matter of the waiver of pre-deposit of service tax liability.