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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
Dr. Chittaranjan Satapathy, VICE-PRESIDENT, MS. JYOTI BALASUNDARAM
Indo Lloyd Freight Systems (P.) Ltd. -Appellant
Versus
Commissioner of Service Tax, Chennai -Respondent
STAY ORDER NOS. 485-486/2010 APPLICATION NOS. ST/S/230-231/2010 APPEAL NOS. ST/385-386/2010
Decided On : 27-09-2010
V.S. Manoj,T.H. Rao
Ms. Jyoti Balasundaram, Vice-President. ‑ Heard both sides on the application for waiver of Service Tax of approximately Rs. 5 lakhs, and penalties. The demand arises as a result of holding that the assessees herein provided Business Auxiliary Service by getting their clients' goods booked through a particular Airline/Shipping Line and therefore, the commission/incentive received by them from the Airline/Shipping Line was liable to tax under the category of 'Business Auxiliary Service'.
2. Prima facie, no case for total waiver has been made out by the assessees for the reason that prima facie the booking on particular Airline/Shipping Line itself amounts to promotion of the business of particular Airline/Shipping Line and the decisions of the Tribunal in the case of namely Euro RSCG Advertising Ltd. v. CCE - 2007 (7) S.T.R. 277 and McCann Erickson (India) (P.) Ltd. v. CCE - 2008 (10) S.T.R. 365 relied upon by the applicants are distinguishable as in those cases the service was treated as a "advertising agency service" and the Bench was not required to go into the question as to whether booking the goods amounts to promotion of the business of a particular Airline/Shipping Line.
3. Keeping in view the totality of facts and circumstances of the case, we direct pre-deposit of Rs. 2.5 lakhs within a period of four weeks from today and on such deposit, pre-deposit of the balance amounts in question shall stand waived and recovery thereof stayed pending the appeal. Failure to comply with this direction shall result in vacation of stay and dismissal of appeal without prior notice.
4. Compliance is to be reported on 22-11-2010.
