2018 (4) TMI 1032 - AT - Service Tax

Demand of service tax - CHA Services, Port Services and Steamer Agency Services - transition of Indirect tax to GST - Held that - against the order passed by the Larger Bench of the Tribunal on the issue of taxability of Port Services, the assessee/appellants had approached the Hon ble High Court of Madras by filing a Writ Petition, which was later converted by the Hon ble High Court to a Civil Miscellaneous Appeal, which is still pending before the Hon ble High Court. When the matter is likely to be disposed of by the Hon ble High Court. The above appeals are pending before the Tribunal for more than a declade. Ahead of the transition of Indirect Tax to GST, this Tribunal has been given a mandate to dispose of all old cases at least prior to 2007. Appeal is disposed as filed closed.

Summary

Issues:
- Appeal against order setting aside demand of service tax on CHA Services, Port Services, and Steamer Agency Services.
- Contesting benefit given on limitation ground by Commissioner (Appeals).
- Pending matter related to taxability of Port Services before the Hon'ble High Court.
- Tribunal's mandate to dispose of old cases before transition to GST.

Analysis:
1. The appeal was filed by the department against the order of the Commissioner (Appeals) setting aside the demand of service tax on CHA Services, Port Services, and Steamer Agency Services. The respondent agreed to pay the differential service tax but contested the demand on reimbursable expenses for CHA Services and Port Services. The Revenue's Authorized Representative contested the benefit given by the Commissioner (Appeals) on the ground of limitation.

2. The Tribunal noted that the assessee/appellants had approached the Hon'ble High Court of Madras regarding the taxability of Port Services. The matter was pending before the High Court, which had directed the Tribunal not to proceed until the Civil Miscellaneous Appeal was disposed of. The High Court had instructed the regular Bench not to hear the matter until further orders were given.

3. Both parties were unable to provide a timeline for the disposal of the matter by the Hon'ble High Court. The appeals had been pending before the Tribunal for over a decade. Considering the impending transition to GST and the Tribunal's mandate to clear old cases, it was deemed appropriate to close the file for statistical purposes. However, it was clarified that the appeals and any stay orders would continue before the Tribunal, and the closure was only for statistical purposes. Both parties were given the liberty to file applications to reopen the matter based on the High Court's decision or any change in circumstances.

4. Consequently, the appeal was disposed of as filed closed, with the understanding that the matter could be reopened based on future developments. The decision was dictated and pronounced in open court by the Tribunal.