2010 (1) TMI 432 - AT - Service Tax

Stat Cargo Handling Services - The appellant has pleaded before the authority below that there was supply of manpower service provided to the service recipient. Held that plea of man power supply taken before and prima facie nothing contrary to such plea produced. Fit case for the waiver of pre deposit.

Summary

Issues: Dispute over classification of services - Whether man power supply service provided constitutes "cargo handling service".

In this judgment by the Appellate Tribunal CESTAT, New Delhi, the issue revolved around the classification of services provided by the appellant. The appellant contended that the service rendered was man power supply service and not cargo handling service, as alleged by the Revenue. The appellant's representative argued that an agreement between the parties clearly indicated the provision of man power for specific activities, refuting the claim of cargo handling service. On the other hand, the Revenue maintained that cargo handling service was indeed provided by the appellant, justifying the demand for service tax. The Tribunal, comprising of Members D.N. Panda and Rakesh Kumar, considered the submissions from both sides and examined the records.

Upon review, the Tribunal observed that the appellant had consistently asserted before the lower authority that man power supply service was indeed provided to the recipient. The Tribunal acknowledged the possibility that the supply of man power might lead to other services, such as cargo handling, but emphasized the need for a clear determination on this matter. Due to the conflicting interpretations and the lack of a definitive classification, the Tribunal deemed it appropriate to waive the pre-deposit requirement of the service tax demand amounting to Rs.6,94,309. Consequently, the Tribunal granted a stay on the realization of the demand during the pendency of the appeal, allowing for further examination and clarification on the nature of services provided by the appellant.