2009 (10) TMI 461 - AT - Service Tax

Tour Operator services- these appeals relate to demand of service tax in respect of Tour Operator services provided by the appellants as a sub-contractor to the main tour operators. He states that since main tour operators have paid service tax in respect of the very same services provided by the appellants as a sub-contactor, no further service tax is payable. Held that- the appellants do not have the details of service tax paid by the main tour operator. Thus, directed for the pre deposit of amount.

Summary

Issues:
1. Liability to pay service tax for services provided as a sub-contractor to main tour operators.
2. Question of limitation regarding the demand made for a period of 5 years.
3. Availability of details of service tax paid by main tour operators.
4. Requirement of pre-deposit for appeal.

Analysis:
1. The appellant contended that they are liable to service tax for Tour Operator services rendered by them as a sub-contractor to main tour operators. They argued that since the main tour operators have already paid service tax for the same services, no further tax is due. However, the appellant failed to provide details of the service tax paid by the main tour operators or the value and tax paid for the services they provided. Consequently, the tribunal found that without such crucial information, the appellant could not establish a prima facie case for waiving the pre-deposit requirement. As a result, the appellant was directed to pre-deposit Rs. 10,00,000 within 4 weeks, with the balance amount waived pending appeal disposal.

2. The issue of limitation was raised concerning the demand for service tax over a period of 5 years. The appellant's counsel mentioned the need for time to obtain details of service tax payments in other cases. However, the tribunal's decision did not directly address the limitation issue, focusing instead on the lack of specific details regarding service tax payments by both the appellant and the main tour operators. This indicates that the tribunal's decision was primarily based on the absence of essential documentation rather than the limitation aspect.

3. The tribunal noted that the appellant and their counsel did not possess the necessary information regarding the service tax payments made by the main tour operators. This lack of documentation regarding the tax payments by the principal operators was a significant factor in the tribunal's decision to require the appellant to pre-deposit a specific amount. The absence of details regarding the tax payments by the main tour operators hindered the appellant's ability to substantiate their claim for waiver of the pre-deposit requirement.

4. The tribunal's decision emphasized the importance of compliance with the pre-deposit directive, highlighting the need for the appellant to deposit a specified amount within a stipulated timeframe. The tribunal granted a waiver for the balance amount pending the appeal's final disposition, contingent upon the appellant's compliance with the pre-deposit requirement. This approach underscores the significance of fulfilling procedural obligations in the appellate process to ensure a fair and orderly resolution of the dispute.