2014 (10) TMI 645 - AT - Service Tax

Waiver of pre deposit - Cargo handling service - Held that - Applicant in their Profit & Loss Account mentioned the service as Cargo Transport Hire Charges - classification dispute of the service would be examined at the time of appeal hearing at length. Prima facie, we find it would be treated as Cargo Handling Service as evident from the various documents - After considering the overall facts and circumstances of the case and the financial hardship pleaded, we direct the applicant to predeposit ₹ 1,50,00,000 within a period of eight weeks - Partial stay granted.

Summary

Issues: Change of cause title from Commissioner of Central Excise to Commissioner of Service Tax, Classification dispute between Cargo Handling Service and Goods Transport Agency Service, Predeposit amount determination

Change of Cause Title:
The Revenue filed applications for a change of cause title from Commissioner of Central Excise to Commissioner of Service Tax. The Tribunal directed the Registry to amend the cause title as Commissioner of Service Tax for further proceedings, allowing the miscellaneous applications.

Classification Dispute - Cargo Handling vs. Goods Transport Agency Service:
The case involved an applicant registered with the Service Tax Department for providing cargo handling service. The adjudicating authority confirmed a demand for service tax along with interest and penalty, as the applicant had not paid service tax for providing cargo service to certain companies. The applicant contended that the service provided should be classified as Goods Transport Agency Service, and the tax should be paid by the recipient companies. The Tribunal, after hearing both sides, found that the service was correctly classified as Cargo Handling Service based on the Profit & Loss Account and various documents. The Tribunal also considered the predeposit amount already made by the applicant and directed them to predeposit the balance amount within a specified period, subject to verification by the Service Tax Department.

Predeposit Amount Determination:
The Tribunal determined that the applicant should predeposit a specific amount within a set timeframe, taking into account the amount already deposited. The Tribunal waived the predeposit of the balance dues upon compliance with the predeposit directive and stayed the recovery of the balance dues during the appeal's pendency. The Tribunal considered the financial hardship pleaded by the applicant in making this determination.

In conclusion, the judgment addressed the change of cause title, resolved the classification dispute between Cargo Handling Service and Goods Transport Agency Service, and determined the predeposit amount for the applicant, considering financial hardship and compliance requirements.