ROYSON JOSEPH Vs. COMMISSIONER OF C. EX., COCHIN

JUDGEMENT

(1.) THE appellant is required to pre -deposit service tax amount of Rs. 80,8,077/ - and penalty of Rs. 8,11,398/ - under Section 78 of the Finance Act, in addition to penalty of Rs. 1000/ - under Section 77 of the said Act. The appellant was carrying out the services of Contract Carriages. The Department has treated that this activity falls within the category of Tour Operators Service. The demands have been raised and confirmed. The appellants contended that they are not Tour Operators but they are only Contract Carriers. They have also relied on the definition of term Tour Operators in terms of Motor Vehicles Rules. The learned Counsel submits that this Bench on the very issue has held that the activity of Contract Carriers does not fall within the category of Tour Operators Service in the case of Mrs. Praseetha Suresh v. Commissioner of Central Excise, Thiruvananthapuram by Final Order No. 814/2006 dated 19 -4 -2006 [2006 (3) S.T.R. 777 (Tribunal)]. The Tribunal has relied on the Madras High Court Judgment rendered in the case of Secretary Federation of Bus Operators Association of T.N. v. U.O.I, reported in 2006 (2) S.T.R. 411 (Mad.) = 2001 (134) E.L.T. 618 and has allowed the appeal. The learned Counsel submits that the issue is covered and prays for allowing the appeal along with stay application.

(2.) THE learned DR prays for time to call for comments from the Commissioner with regard to the reliance on the citations. He further submits that the Department has gone in appeal in this aspect.

(3.) ON a careful consideration of the submissions made by both the sides, we find that the issue is covered by the cited judgments. Hence the stay application is allowed by granting waiver of pre -deposit of the amounts and staying its recovery till the disposal of the appeal. As the issued is covered by the cited judgments, the appeal is posted for out of turn hearing on 31 -7 -2007.