Cargo handling service demand excluded transport of goods, and existing deposit was held sufficient for waiver of remaining pre-deposit.

In a stay application concerning alleged cargo handling service, the tribunal noted that mere transportation of goods falls outside the scope of cargo handling service. As the demand substantially included transportation activity and the applicant had already deposited a part of the disputed amount, the existing deposit was treated as sufficient to hear the appeal. The remaining pre-deposit of service tax and penalty was waived, and stay was granted.

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Issues: Whether, in a stay application against service tax demand for alleged cargo handling service, the applicant had made out a case for waiver of pre-deposit of the remaining service tax and penalty.

Analysis: The demand included a substantial component attributed to transportation of goods, and the order noted that mere transport of goods is excluded from the scope of cargo handling service. As an amount of Rs. 1 lakh had already been deposited and the transportation component formed about half of the demand, the pre-deposit already made was treated as sufficient for hearing the appeal.

Outcome: The remaining pre-deposit of service tax and penalty was waived and the stay petition was allowed.

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