2008 (3) TMI 243 - AT - Service Tax

Royalty charges collected from M/s. Air India for ground handling, exchange facilities etc. & Licence fee on Advertising, Cargo Agents building, Car park, for garbage disposal etc. - Submission of appellant is that amended section will not bring above activities under the category of Airport services , as contended by revenue in view of stay order given in assessee s own case, pre-deposit of Rs. 10 lakh against demand of around Rs. 74 lakh is ordered - stay partly granted

Summary

Issues:
1. Interpretation of the definition of 'taxable service' in relation to 'Airport Services'.
2. Challenge against the confirmation of demands by the department.
3. Pre-deposit amount determination and stay application.

Analysis:

Issue 1 - Interpretation of the definition of 'taxable service' in relation to 'Airport Services':
The appellants were engaged in various services to Air Passengers and were registered with the Central Excise Department. The department found that the activities fell under two categories - A and B, which included royalty charges collected for ground handling, duty-free gold sale, and license fees for various services. The department contended that the amended definition of 'taxable service' in relation to 'Airport Services' encompassed these activities. However, the appellants disputed this interpretation, arguing that the amended section did not bring their activities under the category of 'Airport services'.

Issue 2 - Challenge against the confirmation of demands by the department:
The appellants contested the confirmation of demands based on the department's interpretation. They relied on a Stay Order in their favor in a previous case, where they were directed to pre-deposit a certain amount. The appellants agreed to pre-deposit a specified sum before a given date and requested the matter to be listed for hearing along with similar cases. The department, on the other hand, argued for a higher pre-deposit amount to safeguard revenue interests.

Issue 3 - Pre-deposit amount determination and stay application:
Considering the submissions, the Tribunal noted that in a previous case involving the appellants, a partial deposit was directed. In line with this precedent and other similar stay orders, the Tribunal accepted the appellants' offer to pre-deposit a specific amount before a set date. The Tribunal granted the stay application, allowing the appellants to proceed with the pre-deposit and linking the matter with related cases scheduled for a hearing on a specified date.

This judgment addressed the interpretation of the definition of 'taxable service' in relation to 'Airport Services', the challenge against demands by the department, and the determination of the pre-deposit amount along with a granted stay application.