Customs, Excise and Gold Tribunal - Delhi
Itw India Ltd. vs Commissioner Of C. Ex. on 12 July, 2006
Equivalent citations: 2007[8]S.T.R.530
ORDER
S.S. Kang, Vice-President
1. Heard both sides.
2. The applicants filed this application for waiver of pre-deposit of Service Tax and penalty. The demand of Service Tax was confirmed after treating the applicants as Cargo Handling Agency, which are undertaking the work of packing of the goods. The contention is that the applicants are not Cargo Handling Agency. They are manufacturers of packing materials, which is supplied to various customers and they were simply packing all the goods. The applicants submitted that the activity of packing the goods under the scope of Service Tax vide Entry No. 65(76b) (w.e.f. 16-6-2005) and thereafter they got themselves registered with the authorities. The applicants relied upon the Stay Order passed on 22-5-2006 by the Tribunal in their own case.
3. We find that the applicants were undertaking the activity of packing only. The Tribunal vide Stay Order dated 22-5-2006 allowed the stay petition where demand is confirmed on the same grounds. By taking into consideration the activity of packing is specifically covered under the Service Tax w.e.f. 16-6-2005, prima facie, the pre-deposit of service tax and penalty is waived. The stay petitions are allowed.
Order dictated and pronounced in open Court on 12-7-2006.