Customs, Excise and Gold Tribunal - Delhi
Jitendra Nath And Sons vs Commissioner Of Central Excise on 23 August, 2006
Equivalent citations: 2006(107)ECC455, 2006(109)ECC455, 2006ECR455(TRI.-DELHI)
ORDER
S.S. Kang, Vice-President
1. Applicant filed this application for waiver of pre-deposit of Rs. 7,99,373/- Service tax and penalty by treading the appellant as Clearing and Forwarding Agent. In the impugned order Commissioner (Appeals) relied upon the decision of the Tribunal in the case of Prabhat Zarda Factory (India) Ltd. v. Commissioner of Central Excise, Patna .
2. The contention of the applicant is that they are only selling agent as per the agreement entered with Raymond Ltd. The contention is also that the decision of the Tribunal in the case of Prabhat Zarda Factory (India) Ltd. v. Commissioner of Central Excise, Patna (Supra) is overruled by the Larger Bench of the Tribunal in the case of Larsen & Toubro Ltd. v. Commissioner of Central Excise, Chennai reported in 2006 (3) S.T.R. 321 (Tri.-LB).
3. In these circumstances, as the decision of the Tribunal relied upon in the impugned order is over ruled and the agreement with Raymond Ltd. shows that applicants are selling agent and working on commission basis, prima facie, the applicant had a strong case in their favour. Therefore, the pre-deposit of whole of the amount of service tax and penalty are waived for hearing of the appeal. The Stay Petition is allowed.f