2009 (8) TMI 731 - AT - Service Tax

CESTAT Bangalore 2009 ruling on Service Tax waiver for Indian Railways services

The CESTAT, Bangalore, ruled in 2009 on a stay petition challenging the waiver of pre-deposit of Service Tax, education cess, penalties, and interest ... Waiver of pre-deposit - demand of service tax – within the period of limitation - demand of Service Tax – on the ground that the applicant is liable to Service Tax on terminal charges, demurrage and royalty charges - submission that the demand of Service Tax for the period 1-4-2002 to 31-3-2007 and the show cause notice is clearly time-barred – Held that: - demand of Service Tax within the period of limitation - Applicant is directed to deposit an amount of Rs. 2.5 crores - pre-deposit of the balance amounts is waived The appellate tribunal CESTAT, Bangalore, issued a judgment in 2009 regarding a stay petition filed against the waiver of pre-deposit of Service Tax, education cess, penalties, and interest. The demand of Service Tax was due to charges collected for services rendered to Indian Railways. The applicant argued that the charges were for services provided as a major port and that the demand was time-barred. The tribunal found the demand for Service Tax from 1-4-2002 to 31-8-2006 to be hit by limitation. The applicant was directed to deposit Rs. 2.5 crores within eight weeks, with recovery of the balance amounts stayed until the appeal's disposal. The matter would be further examined at the final hearing. The judgment was pronounced by Members M.V. Ravindran and P. Karthikeyan. The applicant was represented by Shri Anjaneyulu, C.A., and the respondent by Ms. Joy Kumari Chander, Jt. CDR. The order was per M.V. Ravindran, Member (J). The stay petition was dismissed as infructuous due to its listing for disposal on the same day. The tribunal's decision was made in open court.