2014 (12) TMI 661 - AT - Service Tax

Waiver of pre-deposit - storage & warehousing charges - Held that - On factual matrix, random invoices which have been produced before us indicate that the appellant has raised and billed separately for storing charges and other charges towards composite stuffing charges for export consignment and it also indicates that for the export cargo storage chargers they have discharged the Service Tax liability. The entire order of the adjudicating authority has not considered this submission in its correct perspective as we find no reasoning given for rejecting such a submission made before him. Appellant has made out a prima facie case for waiver of the pre-deposit of the amounts involved. Application for waiver of pre-deposit of amounts involved is allowed and recovery thereof stayed till the disposal of appeal - Stay granted.

Summary

Issues:
Waiver of pre-deposit of Service Tax liability, interest, and penalties confirmed by the adjudicating authority for storage & warehousing charges on export consignment.

Analysis:
The appellant filed an application seeking waiver of pre-deposit of an amount confirmed as Service Tax liability, interest, and penalties. The adjudicating authority confirmed the tax liability on the grounds that the appellant did not discharge the Service Tax on storage & warehousing charges for export consignment. The appellant's Chartered Accountant highlighted that they had paid Service Tax for storage of export cargo beyond the free storage period and argued that the Revenue was incorrectly categorizing the charges. The Chartered Accountant referred to previous Stay Orders where the Bench had ruled in favor of the appellant in similar cases involving composite services for export. On the contrary, the Departmental Representative relied on a previous case where demands were upheld for storage and warehousing charges on export cargo.

Upon considering the submissions and perusing the records, the Tribunal focused on the Service Tax liability on goods exported by the appellant. Random invoices presented indicated separate billing for storage charges and composite stuffing charges for export consignment, with Service Tax already paid for storage charges. The Tribunal found that the adjudicating authority did not adequately consider this aspect and provided no reasoning for rejecting the appellant's submission. The Tribunal noted the factual distinction from the case cited by the Departmental Representative, where the appellant had not charged Service Tax for storage of export cargo. Consequently, the Tribunal concluded that the appellant had established a prima facie case for waiver of the pre-deposit amount, granting a stay on recovery until the appeal's disposal.