2007 (8) TMI 80 - AT - Service Tax

Stay granted, appeal proceeds. Service tax upheld, exception for 'Users Fee'. Appeal allowed based on prior order. Impugned decision overturned.

The stay application is allowed, and the appeal is taken up for final hearing. Service tax confirmed on appellants for various services, but tax on 'Users ... Levy of service tax on users fee collected from outgoing international passengers - Taxability of airport users fee - Grant of stay of demand pending appeal - Application of earlier Tribunal precedent in the same caseLevy of service tax on users fee collected from outgoing international passengers - Application of earlier Tribunal precedent in the same case - Service tax on the 'users fee' of Rs. 500 per head collected from outgoing international passengers is not sustainable and is to be set aside. - HELD THAT: - The Tribunal examined the demand of service tax raised on the users fee collected by the appellants from outgoing international passengers. The Bench noted that the identical issue had been considered and decided in Final Order Nos. 464 to 466/2007 dated 18-4-2007 in the appellant's own case, where the service tax on the users fee was set aside. On a careful comparison, the findings of that cited Final Order apply to the present appeal as the question of taxability is the same. Respectfully following the ratio of the earlier Tribunal decision, the impugned levy on the users fee cannot be sustained and the order confirming service tax on that fee must be quashed.Impugned order set aside; appeal allowed insofar as service tax on the users fee is concerned, with consequential relief.Grant of stay of demand pending appeal - The stay application filed by the appellants is allowed. - HELD THAT: - The stay application was considered together with the appeal. Having found that the substantive issue was covered by the earlier Final Order in the appellant's favour, the Bench allowed the stay application as part of its interim relief pending final disposal and proceeded to decide the appeal on merits.Stay application allowed.Final Conclusion: The Tribunal allowed the stay application and, applying its earlier Final Order in the appellant's own case, quashed the service tax demand on the users fee collected from outgoing international passengers and allowed the appeal with consequential relief. The stay application is allowed, and the appeal is taken up for final hearing. Service tax confirmed on appellants for various services, but tax on 'Users Fee' of Rs. 500 per head struck down. Appeal allowed based on previous Final Order. Impugned order set aside, appeal allowed with consequential relief.