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of <h1>Tribunal orders applicant to deposit Rs. 6 crore within 8 weeks, balance waived on compliance</h1> <h3>UPS JETAIR EXPRESS PVT LTD Versus COMMISSIONER OF CENTRAL EXCISE, MUMBAI II</h3> The tribunal directed the applicant to make a pre-deposit of Rs. 6 crore within eight weeks, with the balance amount of service tax, interest, and penalty ... Waiver of pre-deposit of service tax - Various services provided by applicant - import of courier services - Held that:- For Courier received in India, the remuneration towards service rendered received in India and they are paying the service tax on whole of the amount. Therefore, whatever amount they paid to the foreign entity, the applicant is not required to pay service tax. When foreign entity is receiving courier to be delivered in India and the same has been given to the applicant to deliver in India. In that case, we are of the view that the service although performed in India but rendered to foreign entity therefore - Prima facie we are of the view that on this activity, the applicant is not required to pay the service tax. Applicant is receiving courier in India whereas the remuneration towards the service provided were received outside India. For this activity, the applicant is required to pay the service tax as service recipient is located in India and the service has been provided in India by the applicant. Therefore, prima facie we are of the view that the applicant has failed to make out a case for 100% waiver of pre-deposit - Partial stay granted. Issues:1. Waiver of pre-deposit of service tax amounting to Rs. 67,89,17,207/- along with interest and penalty.2. Interpretation of service tax liability in different scenarios involving courier services provided by the applicant.Analysis:1. The applicant sought a waiver of pre-deposit of a substantial service tax amount, interest, and penalties confirmed against them. The case involved the provision of courier services in various scenarios, leading to the imposition of service tax by the revenue department. The applicant contested the demands and requested a waiver of pre-deposit for the disputed amount.2. The applicant engaged in three types of courier services: (a) Receiving courier in India, paying service tax on the remuneration received in India, and not required to pay service tax on the amount paid to the foreign entity. (b) Handling courier received by a foreign entity for delivery in India, where the service was performed in India but rendered to the foreign entity. Citing a previous decision, it was held that service tax may not be applicable in this scenario. (c) Receiving courier in India but receiving remuneration outside India. In this case, the service tax liability was upheld as the service recipient was in India, and the service was provided in India. Consequently, the tribunal directed the applicant to make a pre-deposit of Rs. 6 crore within eight weeks, with the balance amount of service tax, interest, and penalty waived upon compliance, and recovery stayed during the appeal's pendency.This detailed analysis of the judgment highlights the issues of waiver of pre-deposit and the interpretation of service tax liability in the context of courier services, providing a comprehensive understanding of the tribunal's decision.
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