2015 (1) TMI 180 - AT - Service Tax

Waiver of pre deposit - High seas Sale - Commission income or sales activity - Held that - Prima facie, that the applicant sold the goods to the TNEB as evident from the purchase order and Highseas Sale Agreement. There is a tripartite agreement between M/s. Adani Global Pte. Ltd., Singapore, the seller, MMTC the buyer and M/s. Adani Export Ltd., the seller s agent. The Commissioner confirmed the demand of tax on the basis of combined reading of agreement and Highseas Sale Agreement. Prima facie, we find that the applicant sold the goods to TNEB and, therefore, service tax on the administrative charge is not sustainable. Accordingly, we find it a fit case for granting waiver of pre-deposit of entire amount of tax and penalty. Pre-deposit of entire amount of tax and penalty and stay recovery thereof till disposal of the appeal - Stay granted.

Summary

Issues:
1. Change in cause title
2. Waiver of pre-deposit of tax, interest, and penalty

Change in Cause Title:
The Revenue filed a miscellaneous application for a change in the cause title from "Commissioner of Central Excise, Chennai-II" to "Commissioner of Service Tax, Chennai." The Tribunal granted the change in cause title as requested by the Revenue.

Waiver of Pre-deposit of Tax, Interest, and Penalty:
The applicant entered into a Highseas Sale Agreement with TNEB for procuring and selling coal, charging an administrative fee of &8377;100 per metric ton (P.M.T.). The Revenue demanded Service Tax on the balance of &8377;45 P.M.T., alleging the applicant was the agent of TNEB. However, after examining the agreements and documents, the Tribunal found that the applicant sold the goods to TNEB directly. The Tribunal concluded that the service tax on the administrative charge was not sustainable. Therefore, the Tribunal granted a waiver of pre-deposit of the entire amount of tax and penalty. The Tribunal allowed the stay application, directing the pre-deposit of tax and penalty and staying the recovery until the appeal's disposal.

In summary, the Tribunal allowed the change in cause title as requested by the Revenue and granted a waiver of pre-deposit of tax, interest, and penalty to the applicant based on the finding that the applicant directly sold the goods to TNEB, making the service tax on the administrative charge not sustainable.