2009 (2) TMI 200 - AT - Service Tax

Stay of pre-deposit GTA Service receipt of services from the Goods Transport Operators (GTO) and not from the Goods Transport Agencies (GTA). held that - issue involved is debatable - It is admitted fact that the applicant was receiving the services of transport in respect of the goods received in their factory. After amendment to Rule 2(1) of the Service Tax Rules, 1994, the applicant is liable to pay service tax in respect of the transport services received by them. Accordingly we find that the applicant has not made out a prima facie case for granting full waiver of pre-deposit of the amounts. partial stay granted.

Summary

Issues: Stay application for waiver of pre-deposit of service tax, education cess, interest, and penalties under various sections of the Finance Act, 1994.

Analysis:
1. The applicant filed a stay application seeking waiver of pre-deposit of service tax, education cess, interest, and penalties under different sections of the Finance Act, 1994.

2. The applicant argued that they received transport services only from 'Goods Transport Operators' (GTO) and not 'Goods Transport Agencies' (GTA), emphasizing the distinction between the two. Additionally, they mentioned having already deposited a significant amount during the proceedings.

3. After reviewing the submissions and records, the Tribunal found the issue to be debatable. It was acknowledged that the applicant received transport services for goods at their factory, making them liable for service tax post an amendment to Rule 2(1) of the Service Tax Rules, 1994.

4. While the Tribunal did not find a prima facie case for full waiver of pre-deposit, considering the amount already deposited by the applicant, they directed them to deposit an additional sum of Rs. 2,00,000 within four weeks. Upon this deposit, the pre-deposit of the remaining service tax, interest, and penalties was waived, and recovery stayed until the appeal's disposal, with a compliance report due on 2nd April, 2009.