2014 (2) TMI 1088 - AT - Service Tax

Waiver of pre-deposit - Cargo Handling Services - Imposition of interest and equivalent penalty - Held that - at least demand for the period June 2007 to September 2010 seems to be hit by limitation as the earlier show cause notice culminated in an order which is in favour of the appellant - appellant needs to be put to some condition for hearing and disposing the appeal at least for the demands which are raised within the limitation period - Conditional stay granted.

Summary

Issues: Application for waiver of pre-deposit of service tax, interest, and penalty; Interpretation of service tax liability for Cargo Handling Services; Compliance with deposit conditions for appeal hearing; Stay of recovery pending appeal disposal; Out of turn hearing request.

Analysis:
1. Waiver of Pre-deposit: The appellant filed an application seeking the waiver of pre-deposit of an amount of Rs.2,40,71,132/- confirmed as service tax, interest, and penalty under the category of Cargo Handling Services. The Tribunal considered the appellant's request in light of a previous order in favor of the appellant for a similar issue, indicating a potential limitation on the demand for the period June 2007 to September 2010. The Tribunal acknowledged the arguable nature of the service tax liability question and directed a detailed analysis at the final disposal of the appeal.

2. Deposit Conditions for Appeal Hearing: In order to proceed with the appeal and dispose of the demands within the limitation period, the Tribunal directed the appellant to deposit Rs.30,00,000/- within eight weeks. Compliance was to be reported before the Deputy Registrar, who would then present the file for further orders. The Tribunal allowed the waiver of pre-deposit for the balance amounts pending appeal disposal, thereby staying the recovery process.

3. Out of Turn Hearing Request: The appellant had filed a Miscellaneous Application (EH) for out of turn hearing of the appeal, which was not addressed due to the pending stay petition. The Registry was instructed to list the Miscellaneous Application (EH) for disposal on 06.03.2014, indicating a consideration for expediting the appeal process.

This judgment highlights the Tribunal's approach to balancing the appellant's request for waiver with the need for compliance and deposit conditions to ensure a fair hearing and appeal disposal within the legal framework. The decision reflects a meticulous consideration of past orders, limitation periods, and the complexity of the service tax liability issue, emphasizing the importance of detailed analysis at the final disposal stage.