Customs, Excise and Gold Tribunal - Bangalore
Bhagyanagar Services vs Commissioner Of C. Ex. on 26 April, 2006
Equivalent citations: 2007[7]S.T.R.328, [2007]6STT173
ORDER S.L. Peeran, Member (J)
1. The appellants are required to pre-deposit Rs. 7,43,115/- towards Service Tax. They were carrying on the activity of clearing and forwarding. They were also collecting transportation or freight charges. The same had not been included in the clearance value of the services of clearing and forwarding. Hence, the same has been added and duty has been demanded.
2. The learned Counsel submits that the activity of transportation or freight is an independent activity and its value cannot be added to the value of clearing and forwarding. He submitted that transportation or freight services were included in the Finance Act at a later point of time and hence it cannot have retrospective effect. He points out that already there is a pre-deposit of Rs. 3.75 lakhs. He sumitted that as the issue is decided on legal question and is also supported by the judgment in the case of E.V. Mathai & Co. v. CCE, Cochin , the waiver for the balance amount be granted.
3. The learned DR supports the order and submits that these charges are required to be added and relies on the rulings in the cases of Prabhat Zarda Factory (India) Ltd. v. CCE, Patna and Coal Handlers Pvt. Ltd. v. CCE, Kolkata-I
4. Both sides contend that their case is supported by judgments. On a careful consideration, we find that the appellant has already pre-deposited Rs. 3.75 lakhs and both sides have got citations in their support. In this view of the matter, the stay application is allowed granting waiver of pre-deposit of the balance amount and stay of its recovery. As the issue is covered by one judgment or the other, therefore, the prayer for listing the matter out of turn hearing is accepted. Matter to come up for hearing on 12th June, 2006.
5. The Counsel seeks for listing another matter of the same party for an earlier period in E/St/59/2005. Registry to link the same for hearing on 12th June, 2006.
(Pronounced and dictated in open Court)