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2015 (9) TMI 363 - MADRAS HIGH COURTWaiver of pre-deposit - export of service or not - air travel agents - commission / overriding commission - IATA agents - general sales agent, in respect of cargo sales and passenger sales - Extended period of limitation - Held that:- Circular No. 111, dated 24-2-2009 provides that if the benefits of the service accrues outside India, it will be export of taxable service. Furthermore, the issue of 5% commission paid to IATA agents and incentive paid to IATA agents, who have already discharged Service Tax liability, for the purpose of Service Tax, would have to be considered on merits so as to exclude those substantial amounts from out of the purview of tax liability mulcted on the appellant. The Tribunal has not considered the calculation as probable amount as shown above. This Court, prima facie feels that the Tribunal should have taken the above factors into consideration while ordering pre-deposit. The plea that the pre-deposit order is onerous, and would cause undue hardship on a running business organisation is, therefore, tenable. Further, the appellant has also pleaded that such pre-deposit will erode the working capital of the company and if the amount is directed to be paid, it will seriously jeopardize the running business of the appellant, which is a travel agent, and, its business would almost come to a standstill. The order of ₹ 35 lakhs as pre-deposit ordered by the Tribunal is modified and the appellant is directed to deposit a sum of ₹ 15 lakhs. - Decided partly in favor of assessee.
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