2014 (8) TMI 507 - AT - Service Tax

Penalty u/s 78 - Cargo handling service - whether the activity of the appellants as regards the loading and unloading of sugar in the godown amounts to providing cargo handling services or not - Held that - there are Tribunals decisions holding that such an activity does not amount to cargo handling services. In that case, the imposition of penalty upon the appellants in terms of Section 78 of the Finance Act cannot be, at this prima facie stage, held to be justifiable. We accordingly, dispense with the condition of pre-deposit of penalty, stay the recovery of the same during the pendency of the appeal - Stay granted.

Summary

The appeal was filed against the Commissioner's order imposing penalty under Section 78 of the Finance Act, 1994. The Tribunal found that the activity of loading and unloading sugar did not amount to cargo handling services, so the penalty was not justifiable. The Tribunal stayed the recovery of the penalty during the appeal.