2014 (8) TMI 454 - AT - Service Tax

Supply of Tangible Goods service - supply of 3 to 5 ton capacity tankers to ONGC for transportation of crude oil - Held that - prima facie view, in an identical situation has been taken by us as to hold that services rendered by the appellant is interpretation of classification of services. Accordingly, we consider the amount deposited by M/s. ONGC towards the service tax liability, under the category of GTA services, as enough deposit to hear and dispose the appeal. Accordingly, the application for waiver of pre-deposit of amounts involved is allowed and recovery thereof stayed till the disposal of appeal - Stay granted.

Summary

Issues:
Differential service tax liability on the supply of tankers for transportation of crude oil.

Analysis:
The appellant filed a stay petition seeking the waiver of pre-deposit of an amount confirmed as service tax, interest, and penalties under the Finance Act, 1994. The issue in question pertains to the differential service tax liability on the supply of tankers to ONGC for crude oil transportation. The appellant argued that ONGC had already discharged the service tax liability under GTA services by availing abatement on the invoices raised. Reference was made to a previous order where a similar issue was considered, leading to a prima facie conclusion and a remand for further assessment.

Upon hearing both sides and examining the records, the Tribunal noted the arguments presented. It was observed that a prima facie view had been taken previously by the Tribunal on a similar matter concerning the interpretation of the classification of services. Considering this, the Tribunal deemed the amount deposited by ONGC towards service tax liability under GTA services sufficient for hearing and disposing of the appeal. Consequently, the application for the waiver of pre-deposit was granted, and the recovery of the amount stayed pending the appeal's disposal. The decision was dictated and pronounced in court by the presiding judge.