TaxTMI 
TaxTMI 
2010 (9) TMI 592
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....s such as stacking, unloading, re-packing, facilitation for X-raying etc. of the export cargo collectively termed as terminal charges. After due process of law, the original authority found that KSIE had short-paid service tax to the tune of Rs. 14,38,692/- on terminal charges taxable under "Storage and Warehousing Service." He demanded applicable interest on the above amount of service tax. He also imposed penalties of equal amounts as the tax demanded under Sections 76 & 78 of the Finance Act 1994 (the Act). 2. Vide the impugned order, the Commissioner (Appeals) remanded the dispute to the original authority with a direction that the original authority shall requantify the liability of the assessee after excluding the charges relatable to storage and warehousing of agricultural products accepting the plea in this regard made by the assessee. The original authority was to compute the liability correcting the arithmetical errors that had crept in and pointed out by the appellants. He also vacated the penalty imposed on the appellants. 3. In the appeal filed before the Tribunal, the appellants have taken the following grounds. The Commissioner had failed to decide th....
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....The other main contention raised in the appeal is that the Commissioner had vacated penalties imposed by the original authority finding that the dispute involved was of technical nature and in such cases, penalty was not imposable in the light of several judgments of the Apex Court. After having found the assessee not liable to penalty for not paying service tax, extended period could not have been validly invoked to confirm the impugned demand against them. There is merit in this argument. We find that though this plea of limitation was raised before the Commissioner (Appeals), he has not dealt with the same in the impugned order. In the circumstances we order that the demand shall be restricted to normal period. The appeal is thus allowed in part. Appeal No. ST/256/2009 6. KSIE has collected various charges, namely warehousing, demurrage, handling charges for import cargo and unaccompanied baggage, terminal charges for export, fork lift charges, x-ray charges, facilitation charges, cold room charges etc., from persons engaged in international trade and use the airport as gateway port. After issue of show cause notice, and after hearing the appellants also on its failur....
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....f Rs. 90,575/- towards facilitation for x-ray of cargo by client airlines. He also demanded applicable interest and imposed penalty @ Rs. 200/- per day or 2% of service tax in arrears whichever was higher under Section 76 of the Act. 8. KSIE has contested the demand and penalty in this appeal Filed before the Tribunal. As regards the demurrage and handling charges, with respect to passenger baggage/export cargo, it is argued that the same was clearly outside the purview of service tax as clarified in Circular No. F. No. B/11/1/02-TRU, dated 1-8-2002. This view has also been accepted by the Joint Commissioner of Service Tax in his order dated 3-1-2007 in the appellants' own case. While deciding it's liability on terminal charges, the Commissioner erred in holding that the said circular did not apply to unaccompanied passenger baggage. The appellants had not incurred any liability to service tax for demurrage and handling charges in respect of unaccompanied baggage and export cargo. As regards export cargo, the main service rendered was that of cargo handling. Therefore, the same could not be subjected to service tax under any other category. As regards collection of facilita....
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....(Appeals), Cochin reported in 2009 (15) S.T.R. 279 (Tri.-Bang.) in support of this plea. The appellants therein was engaged in cash management service (CMS). These included (i) maintenance of accounts of CMS clients; (ii) all types of transactions including receipt and payment of cash in such accounts, collection of cheques; and (iii) payment of invoices on behalf of the clients. Vide order impugned before the Tribunal, the Commissioner (Appeals) had confirmed demand of Rs. 28,38,030/- under heading 'Business Auxiliary Service' along with interest. The Tribunal accepted the arguments of the appellants that cash management service excluded from the relevant 'banking and other financial service' during the material period could not be subjected to tax under the category 'business auxiliary service'. 9.2 Ld. Counsel submits that since passenger baggage was specifically excluded from levy under the category 'cargo handling service', passenger baggage could not be taxed under 'storage and warehousing service'. We are not able to accept this argument. In Federal Bank Ltd. case cited by the appellants, the activity of cash management was excluded from 'banking and other financial ....