2013 (10) TMI 392 - AT - Service Tax

Cargo Handling Services - Waiver of Pre-deposit - Held that - Adjudicating Authority had confirmed the amounts on the ground that appellant had not discharged the service tax liability on Cargo Handling Services rendered to DTA Unit and also to SEZ unit Relying upon Norasia Container Lines vs. CCE 2011 (3) TMI 639 - CESTAT, NEW DELHI - The entire issue needs to be gone into detail as to whether the appellant was covered under the category of Cargo Handling Services or not and needed to be appreciated from the facts as well as the services rendered by the appellant - At this juncture, we find that the issue was debatable one - As the appellant had deposited approximately 40-45% of the total demand raised on the appellant, we consider the same as enough deposit to hear and dispose the appeal - Accordingly, application for the waiver of pre-deposit of balance amounts involved was allowed and recovery thereof stayed till the disposal of appeal Stay granted.

Summary

Issues:
Waiver of pre-deposit of service tax on Cargo Handling Services, interest, and penalties under Finance Act, 1994 for DTA and SEZ units.

Analysis:
The appellant filed a stay petition seeking the waiver of pre-deposit of confirmed amounts of service tax on Cargo Handling Services, interest, and penalties under the Finance Act, 1994 for services rendered to DTA and SEZ units. The adjudicating authority confirmed the amounts due, alleging non-payment of service tax liability for services provided to both units. The appellant argued that services provided to the DTA unit, conducted within factory premises, should not be classified as Cargo Handling Services based on established case law. Regarding services to the SEZ unit involving movement of goods, the appellant cited a relevant Tribunal decision. The appellant had already made substantial deposits towards the liabilities, which they contended were sufficient for the appeal's consideration.

Upon reviewing submissions and records, the Tribunal acknowledged the need for a detailed examination to determine if the appellant's services fell under Cargo Handling Services. The Tribunal deemed the issue debatable and noted that the appellant had deposited a significant portion of the total demand raised, considering it adequate for appeal proceedings. Consequently, the Tribunal allowed the application for the waiver of pre-deposit for the remaining balance, halting recovery until the appeal's resolution. The decision was made based on the deposited amount being a substantial percentage of the total demand, enabling the appeal's fair consideration and disposal.