2009 (5) TMI 510 - AT - Service Tax

Tribunal grants waiver on pre-deposit for strong case

The Tribunal granted a waiver of the pre-deposit amount for the first issue, staying the demand till the appeal's disposal, as the appellant had a strong ... Stay/dispensation of pre-deposit- Tour operator service- Reimbursement of expenses from customers towards darshan and film city entry fee. Fee for boat and cruise ride. Held that- appellant having strong case on limitation in respect of demand on reimbursement. Taxability of amount for boat ride debatable and amount already deposited sufficient. Pre-deposit of balance amount waived. Issues involved:1. Service tax of Rs. 35,63,285/- as reimbursement of expenses from customers towards TTD darshan and Ramoji Film City entry fee.2. Service tax of Rs. 65,77,725/- not paid on the amounts collected towards fee for the ride of boats and cruises arranged by the applicant.Analysis:Issue 1:The appellant contested the demand of Rs. 35,63,285/- as service tax, arguing that the adjudicating authority had previously ruled in their favor in Order-in-Original No. 15/2005, dropping the proceedings. However, the Commissioner (Appeals) revised this order under Section 84, leading to the challenge before the Tribunal. Upon careful consideration, the Tribunal acknowledged the appellant's strong case on the limitation issue, noting that the adjudicating authority had previously ruled in their favor on an identical issue. Therefore, the Tribunal granted a waiver of the pre-deposit amount for this issue, staying the demand till the appeal's disposal.Issue 2:Regarding the second issue of service tax amounting to Rs. 65,77,725/- not paid on amounts collected for boat rides and cruises, the appellant argued that the activities organized by them, starting and ending at the same place, did not fall within the definition of a 'tour.' The appellant had already deposited Rs. 19,88,063/-, which they considered as a sufficient deposit. On the other hand, the Jt. CDR contended that the definition of a tour should be construed broadly, including the appellant's activities. The Tribunal recognized this issue as debatable and requiring detailed examination during the final hearing. Considering the amount already deposited by the appellant, the Tribunal deemed it adequate for hearing and disposing of the appeal, thus granting a waiver of the pre-deposit of the balance amount of dues demanded and staying the same till the appeal's disposal.