2014 (2) TMI 575 - AT - Service Tax

Waiver of pre deposit - Penalty u/s 78 - Held that - The appellant is admittedly a GTA service provider and requires truck for providing the services. He may use his own truck or may hire the truck from independent truck owners. Such hiring of trucks by him cannot be held to be business auxiliary services. As such, we are of the view that appellant is entitled to unconditional stay - Stay granted.

Summary

Issues:
Dispensing with the pre-deposit of Service Tax and penalties imposed under Sections 77 and 78 of the Finance Act, 1994.

Analysis:
The judgment pertains to a case where the appellant, a goods transport agency, sought dispensation of the pre-deposit of Service Tax and penalties totaling Rs.1,19,341/- imposed for the period January 2005 to March 2009. The demand was based on the differential value of services provided by the appellant to clients and the truck hiring charges paid to truck owners, treated as commission by the lower authorities and classified under Business Auxiliary services. The Tribunal, after hearing both parties, disagreed with the Revenue's stance. It noted that the appellant, being a Goods Transport Agency (GTA) service provider, required trucks for service provision, which could be either owned or hired from independent truck owners. The act of hiring trucks could not be deemed as providing Business Auxiliary services. Consequently, the Tribunal found in favor of the appellant, granting unconditional stay against the demand.

The Tribunal, having found no further arguments necessary, initially intended to dispose of the appeal. However, the learned DR requested the consolidation of this appeal with other similar pending cases. In response, the Tribunal fixed the present appeal for disposal on a specific date and directed the DR to provide a list of other pending identical appeals for consolidation. The Registry was also instructed to identify and list all such appeals for the designated date of disposal.

This judgment showcases a thorough analysis of the appellant's situation, clarifying the distinction between the appellant's role as a GTA service provider and the hiring of trucks, ultimately leading to a favorable decision in granting unconditional stay against the imposed demand. The procedural aspect of consolidating similar appeals for efficient disposal further demonstrates the Tribunal's commitment to managing cases effectively.