Tribunal Orders Pre-Deposits for Service Tax: Rent-a-Cab Service 2006-2010

The Tribunal directed the appellants to make pre-deposits for service tax liabilities related to 'Rent-a-Cab service' for the period 2006-07 to 2009-10. The Tribunal required pre-deposits to comply with Central Excise Act and Finance Act provisions, despite arguments based on SEZ Act provisions. Compliance with pre-deposit requirements was mandated to avoid recovery actions during the appeal process.

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Issues:
1. Liability to pay service tax for 'Rent-a-Cab service' for the period 2006-07 to 2009-10.
2. Applicability of extended period of limitation for demand of service tax.
3. Consideration of Section 51 of the SEZ Act in relation to service tax liability.

Analysis:

Issue 1: Liability to pay service tax for 'Rent-a-Cab service'
The applicants were providing 'Rent-a-Cab service', and service tax was demanded from them for the period 2006-07 to 2009-10. The learned counsel argued that due to contrary decisions by the Tribunal, they believed they were not liable to pay service tax. The Tribunal directed the appellants to make a pre-deposit of 50% of the service tax demanded, following similar cases. The counsel requested that the pre-deposit already made should be considered sufficient for compliance. The Tribunal directed the appellants to make an additional pre-deposit to comply with the provisions of the Central Excise Act and the Finance Act.

Issue 2: Applicability of extended period of limitation
Regarding the demand of service tax for Rs.30,09,008/-, the Tribunal directed the appellants to make a pre-deposit of 50% of the adjudged dues, following a previous decision. The counsel argued that the Tribunal did not consider Section 51 of the SEZ Act in a related case, but the Tribunal was not convinced by this argument. The Tribunal directed the applicants to make a pre-deposit of 50% of the impugned demands for the normal period.

Issue 3: Consideration of Section 51 of the SEZ Act
The counsel argued that in a related case, the Tribunal did not consider Section 51 of the SEZ Act, suggesting that the appellants may not be liable to pay service tax. However, the Tribunal decided to consider this argument at the time of the final hearing. The applicants were directed to make an additional pre-deposit within a specified timeframe, and on compliance, the balance amount of service tax, interest, and penalty would be waived and recovery stayed during the appeal's pendency.

This judgment addresses the liability of the appellants to pay service tax for providing 'Rent-a-Cab service', the applicability of the extended period of limitation, and the consideration of Section 51 of the SEZ Act in relation to service tax liability. The Tribunal directed the appellants to make pre-deposits based on previous decisions and considerations, ensuring compliance with the relevant legal provisions.

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