Service tax on tour packages: Tribunal grants stay and waives balance demand pending reduced pre-deposit due to liability uncertainty.

Service tax on tour packages was disputed on the footing that train fares, darshan tickets, entry passes, food, accommodation and other bundled facilities were not fully includable, and that the notified abatement had already been extended. The Tribunal noted that the Commissioner had not considered deductions relating to several package components and that the appellant had admitted liability only to a limited extent. Given the uncertainty over the exact tax liability, partial interim relief was granted by waiving the balance demand and staying recovery, subject to a reduced pre-deposit within two months.

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Issues: Whether the appellant was entitled to waiver of the balance service tax demand and stay of recovery pending appeal, subject to a reduced pre-deposit.

Analysis: The appellant claimed that several components of the tour package, including train fares, darshan tickets and entry passes, were not includable for service tax, and that the notified abatement had already been extended. The Tribunal noted that the Commissioner had not considered deductions relating to food, accommodation and other facilities said to form part of the tour package, and that the appellant had admitted liability only to a limited extent. In view of the uncertainty regarding the exact tax liability, the Tribunal found it appropriate to grant partial relief by requiring a reduced deposit and staying recovery of the balance.

Conclusion: The balance demand was waived and recovery was stayed on condition of a pre-deposit of Rs. 1,00,000 within two months, failing which the appeal would stand dismissed.

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