Stevedoring not taxable as port services: full waiver of pre-deposit granted pending appeal.

Stevedoring activities were treated by the department as port services for service tax purposes, leading to demands for service tax, CENVAT credit, interest and penalty. The Bench noted an earlier ruling that stevedoring services were not taxable as port services, and that view had been affirmed by the High Court. Relying on that precedent, the appellant was granted full waiver of pre-deposit pending the appeal, and no coercive action was directed until final disposal.

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Issues: Whether full waiver of pre-deposit should be granted in respect of the service tax, cenvat credit, interest and penalty demands pending disposal of the appeal, particularly in light of the earlier view that stevedoring services are not taxable as port services.

Analysis: The demand arose from the department's treatment of stevedoring activities as port services. The Bench noted an earlier decision holding that stevedoring services were not liable to service tax under the port services category, and that view had been affirmed by the High Court. On that basis, the appellant sought parity in interim relief.

Outcome: Full waiver of the pre-deposit was granted and no coercive action was directed until disposal of the appeal.

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