Appellant's Transfer Request Denied in Service Tax Liability Case; Liability Upheld, Penalty Waived

The appellant's argument to transfer the case to a Single Member Bench was dismissed as cases involving service tax liability must be heard by Division Benches. The Tribunal held the appellant liable to pay service tax as the recipient of goods transport service, despite payment being initially made by the supplier. The appellant was directed to deposit the tax amount and upon compliance, the penalty pre-deposit was waived. The judgment clarified the jurisdiction of Single Member Bench in service tax cases, the appellant's liability for service tax, the applicability of service tax on raw material transport, and the pre-deposit requirement.

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Issues:
1. Jurisdiction of Single Member Bench in service tax cases.
2. Liability of the appellant to pay service tax as the recipient of goods transport service.
3. Applicability of service tax on the appellant for transport of raw material from Nepal to Rajasthan.
4. Requirement of pre-deposit in the case.

Analysis:
1. The appellant argued that the case should be transferred to the Hon'ble Single Member Bench, citing similar cases where stay was granted. However, it was clarified that cases involving service tax liability and determination of tax rate cannot be heard by a Single Member Bench. Such cases must be decided by Division Benches, and appeals must go to the Hon'ble Supreme Court, not the High Court.

2. The appellant received raw material from Nepal and claimed no service tax liability as the transporter was engaged by the supplier in Nepal. The Tribunal found that even though the payment was initially made by the supplier, it was on behalf of the appellant, who reimbursed the freight charges. The Tribunal held that the appellant is liable to pay service tax as the recipient of goods transport service. The appellant offered to deposit the tax amount, which was a small sum of Rs. 34,897, within six weeks.

3. The Tribunal directed the appellant to deposit the entire tax amount within four weeks and report compliance. Upon such deposit, the pre-deposit of the penalty amount was waived during the appeal's pendency. Furthermore, the registry was instructed to list all similar appeals before the appropriate Division Bench for hearing stay applications and appeals.

This judgment clarifies the jurisdiction of Single Member Bench in service tax cases, the liability of the appellant to pay service tax as the recipient of goods transport service, the applicability of service tax on transport of raw material, and the requirement of pre-deposit in the case.

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