2008 (7) TMI 182 - AT - Service Tax

Service tax liability under the category of BAS under Section 65(19)(a) in respect of documentation charges/fees collected from importers and exporters of cargo - appellants has claimed that in respect of identical activity performed by the company at Mumbai a similar dispute has been settled in their favour - hence Revenue cannot claim prima facie case for enforcing the impugned demand of tax against the assessee at Chennai stay granted

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellants, waiving pre-deposit and stay of recovery of service tax, interest, and penalties totaling over Rs. 27 lakhs. The demand was for 'Business Auxiliary Services' related to documentation charges collected from importers and exporters of cargo. The Tribunal noted a similar dispute settled in favor of the company at Mumbai, where the Department dropped the proposal to levy service tax. Therefore, the demand of tax against the appellants in Chennai was not upheld.