2013 (11) TMI 45 - AT - Service Tax

Cargo Handling Services - appellant herein collected the salt and Soda ash in the factory of Tata Chemicals, packed them and stocked them in the factory as well as on the railway wagons. - Held that - Service Tax liability on Cargo handling services would not be applicable in this case as is held by Hon ble High Court of Jharkhand in the case of Modi Construction Co 2011 (4) TMI 598 - JHARKHAND HIGH COURT . At the same time, we also find that the appellant has been raising bills on Tata Chemicals Ltd for cleaning activity undertaken by them in the factory premises, which is evident from the bills which indicate the description of removal of dust and debris and cleaning of tar roads etc. Since there is no amount which has been bifurcated which attribute to the cleaning services, we find that the appellant needs to be put to some condition to hear and dispose the appeal - stay granted partly.

Summary

Issues:
1. Stay petition for waiver of pre-deposit of Service Tax liability, interest, and penalties.
2. Determination of services rendered by the appellant - cargo handling, cleaning, manpower supply.
3. Applicability of Service Tax liability on specific services rendered.
4. Requirement of pre-deposit for appeal disposal.

Analysis:

Issue 1: Stay petition for waiver of pre-deposit
The appellant filed a Stay Petition seeking a waiver of pre-deposit of the confirmed Service Tax liability, interest, and penalties under the Finance Act, 1994.

Issue 2: Determination of services rendered
The appellant was alleged to have provided cargo handling services, cleaning services, and manpower supply agency services. The counsel argued that the appellant's activities fell under cargo handling services and should not be taxable based on a precedent from the High Court of Jharkhand.

Issue 3: Applicability of Service Tax liability
The Departmental Representative contended that the appellant had also engaged in cleaning activities, as evidenced by the invoices provided. The Tribunal agreed that cargo handling services were not taxable based on the Jharkhand High Court's decision. However, the Tribunal noted that the appellant had invoiced Tata Chemicals for cleaning activities, indicating the need for a partial deposit.

Issue 4: Requirement of pre-deposit for appeal
The Tribunal directed the appellant to deposit Rs.1 lakh within eight weeks and report compliance. The compliance report was to be submitted before the Deputy Registrar for further action. Upon compliance, the waiver of pre-deposit for the remaining amounts was allowed, and recovery stayed until the appeal's disposal.

This judgment emphasizes the importance of differentiating between taxable and non-taxable services, the necessity of partial pre-deposit for specific services, and the procedural requirements for appeal disposal in tax matters.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the Tribunal's decision regarding the waiver of pre-deposit and the determination of taxable services rendered by the appellant.