2009 (7) TMI 154 - AT - Service Tax

Demand has been confirmed against the appellant on the ground that he is liable to pay service tax under the category of Cargo Handling Agency, inasmuch as he is providing labourers to Railway. We find that as per the terms of contract, the labourers supplied by the appellant are under full supervision and control of the station master. The station master in-charge is to get the work done of unloading/loading etc. Inasmuch as the appellants are providing only labourers and so in no way connected with the Cargo handling activity, we, prima facie, find force in the appellant s plea and accordingly allow the stay petition unconditionally.

Summary

The Appellate Tribunal CESTAT, Ahmedabad confirmed a Service Tax of Rs. 2,11,339 against the appellant but allowed the stay petition unconditionally as they were found not connected with the Cargo handling activity. Penalty of equal amount imposed under Section 76 and Section 78 of the Act and Rs. 2,000 under Section 77 of Finance Act, 1994.