2013 (12) TMI 1430 - AT - Service Tax

Waiver of pre deposit - Demand of service tax - Held that - on a rough estimate of the amount involved is the tax amount on the differential value of the freight amount which is about Rs.35 lakhs in the two appeals together we direct the applicant to make a pre-deposit of Rs.7 lakhs within a period of six weeks from today for admission of the appeals - Stay granted partially.

Summary

Issues:
1. Correction in the cause title
2. Classification of services for service tax
3. Demand on freight charges
4. Pre-deposit of dues for admission of appeals

Correction in the cause title:
The Revenue filed miscellaneous applications for a change in the cause title from "Commissioner of Central Excise, Chennai-II" to "Commissioner of Service Tax, Chennai." The Tribunal directed the Registry to correct the cause title accordingly, and the miscellaneous applications were allowed.

Classification of services for service tax:
The applicant, engaged in Freight Forwarding, was registered for service tax under different categories. The department alleged that the applicant was charging higher amounts as freight from clients but paying lesser amounts to shipping lines. The department proposed to classify this as a taxable service under "Business Auxiliary Service" and "Business Support Service" for different periods. The applicant contested the demand, arguing that ocean freight was not subject to service tax and that their activities did not fall under the mentioned categories. The Tribunal considered previous cases and directed the applicant to make a pre-deposit for admission of the appeals.

Demand on freight charges:
The dispute revolved around the differential amount in freight charges for specific periods and the entire freight charged by the applicant. The Authorized Representative for Revenue argued that the retained amount could be considered a taxable service under "Business Auxiliary Service" or "Business Support Service." The Tribunal noted the amount involved and directed the applicant to make a pre-deposit for admission of the appeals.

Pre-deposit of dues for admission of appeals:
After considering submissions from both sides, the Tribunal ordered the applicant to make a pre-deposit of Rs.7 lakhs for admission of the appeals, with the balance dues waived and collection stayed during the appeal process. Compliance was to be reported by a specified date.

This judgment addressed the correction in the cause title, classification of services for service tax, the demand on freight charges, and the pre-deposit of dues for admission of appeals, providing detailed analysis and directives for each issue.