2014 (2) TMI 200 - AT - Service Tax

Waiver of pre-deposit of Service Tax - Penalty imposed under Section 78 - Tour Operator Service/Rent-A Cab Operator Scheme and Cargo Handling Service - service tax not collected from the customers - Mistake of law - Held that - neither in the Show Cause Notice nor in the impugned Order, the amount relating to Tour Operator Service and Cargo Handling Service had been separately mentioned and the respective service taxes were not accordingly demanded. The ld. Advocate disputed the demand of service tax of cargo handling service, as according to him, no such services were rendered by the Applicant during the relevant period - Assessee directed to make pre deposit - Conditional stay granted.

Summary

Issues:
Waiver of pre-deposit of Service Tax and penalty under Section 78 of the Finance Act for services provided, dispute over cargo handling service, financial hardship claimed by the individual applicant.

Analysis:

The judgment by the Appellate Tribunal CESTAT KOLKATA involved an Application seeking waiver of pre-deposit of Service Tax amounting to Rs.87,37,896.00 along with an equal penalty imposed under Section 78 of the Finance Act and other penalties under various provisions of the Finance Act, 1994. The Applicant had provided services to M/s. Durgapur Steel Plant by renting buses for employee transportation and rendering cargo handling services. The Applicant argued that no bifurcation was made between Tour Operator Service/Rent-A Cab Operator Scheme and Cargo Handling Service in the demand notice. The Applicant, an individual, claimed lack of awareness of tax provisions and non-collection of service tax from customers, citing financial hardship. The Applicant offered to deposit Rs.15.00 lakh as a fair amount.

The Revenue acknowledged the levy of service tax on the services provided by the Applicant but admitted the lack of evidence regarding cargo handling services in the Show Cause Notice. The Tribunal noted that the dispute did not concern the levy of service tax on the services provided by the Applicant, namely Tour Operator Service/Rent-A Cab Operator Scheme and Cargo Handling Service. It was observed that the tax amount was not bifurcated between the two services in the notice or the impugned Order. The ld. Advocate disputed the demand for service tax on cargo handling service, asserting that such services were not rendered during the relevant period, a claim not contested by the ld. AR.

After hearing both sides and examining the records, the Tribunal accepted the offer of Rs.15.00 lakh made by the ld. Advocate. Consequently, the Applicant was directed to deposit the specified amount within 8 weeks, following which the predeposit of the remaining dues would be waived, and the recovery stayed during the pendency of the Appeal. The compliance was to be reported on a specified date. The judgment was dictated and pronounced in open court by the Tribunal.