2010 (5) TMI 342 - AT - Service Tax

Clearing & Forwarding Agent service - the services received by the appellant from Cairn Energy (India) Pvt. Ltd. in the form of Clearing & Forwarding Agent service is taxable - same Order-in-appeal which has been passed by the learned Commissioner (Appeals) was also in respect of Cairn Energy (India) (P.) Ltd. v. CC&CE held that the services rendered by Cairn Energy (India) (P.) Ltd. would not fall under the category of C&F agent service - Held that - waiver of pre-deposit of the amounts involved is allowed

Summary

Issues:
1. Stay petition for waiver of pre-deposit of tax, interest, and penalties.
2. Dispute over service tax liability on services received from a company.
3. Legal flaw in the issuance of the show-cause notice.
4. Interpretation of the category of Clearing & Forwarding Agent service.
5. Prima facie case for waiver of pre-deposit.

Analysis:
1. The stay petition sought waiver of pre-deposit of tax, interest, and penalties amounting to Rs. 9,49,901 along with various penalty amounts under different sections. The petition and appeal were reinstated after clearance from the Committee on Disputes.

2. The appellant contested the service tax liability imposed by the adjudicating authority and upheld by the Commissioner (Appeals) concerning services received from a company. The appellant argued that a previous Order-in-Appeal had ruled that the services in question did not fall under the category of Clearing & Forwarding Agent service, making the appellant liable for service tax as the recipient of the services.

3. The appellant raised a legal flaw in the issuance of the show-cause notice, contending that it was issued beyond the permissible period under the Revalidation Act, citing precedent decisions to support the argument.

4. Upon reviewing the submissions and records, the Tribunal noted that a previous Final Order had determined that the services provided by the company in question did not qualify as Clearing & Forwarding Agent service. Consequently, as the appellant received these services, they were not considered under the same category, leading to a prima facie case for waiver of pre-deposit.

5. Considering the findings, the Tribunal allowed the application for waiver of pre-deposit, staying the recovery of the amounts in question until the appeal's final disposal. The decision was based on the interpretation of the service category and the appellant's liability as the service recipient.