HARI AND CO. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) AFTER examining the records and hearing both sides, we note that the Commissioner has demanded service tax of over Rs. 1.6 crores along with Education Cess from the appellants for the period 16 -7 -2001 to 31 -8 -2005 in adjudication of a show -cause notice dated 23 -10 -06, by invoking the extended period of limitation under Section 73(1) of the Finance Act, 1994. The said demand is on "Port Services". Besides this, there is also a demand of service tax of over Rs. 3 lakhs on "CHA Service" for the same period and a further demand of over Rs. 1.46 lakhs on "GTA Services" for the period 1 -1 -05 to 31 -8 -05. An amount of Rs. 20 lakhs paid by the party during investigations has been appropriated towards the demand on 'Port Services'. Ld. Commissioner has also imposed penalties on the assessee under Sections 76 to 78 of the Finance Act, 1994. The present application seeks waiver of pre -deposit and stay of recovery in respect of the adjudged dues less the payment already made.

(2.) AFTER hearing both sides, we note that the substantive issue in this case is whether the activity undertaken by the assessee in Tuticorin and Chennai ports during the material period is exigible to service tax in the category of "Port Services" and that, on identical issue, this Bench has granted waiver and stay to certain other assessees and has also posted such cases for final hearing. In the present case, the assessee has also challenged the above demands on the ground of limitation. It is submitted that the relevant SCN did not raise the requisite ground for invoking the proviso to Section 73(1) of the Finance Act, 1994.

(3.) WE have also taken into account the payment already made by the party. In the circumstances, there will be waiver and stay of recovery in respect of the penalty amounts and the balance amount of service tax. The appeal will be heard along with the similar cases on 13 -2 -2008.