NAROTTAM AND CO. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE applicant filed this application for waiver of pre -deposit of tax of Rs. 6,59,788/ - and penalties. Ld. Counsel submits that the applicants are providing Clearing and Forwarding Agency services and paying service tax on the service charges received from their principal. He further submits that the tax was demanded on the amount received by them for handling of goods from the principal which is not includible in the taxable value. He relied upon the decision of the Tribunal in the case of McDowell and Co. Ltd. v. CCE, Bangalore -III reported in 2006 (199) E.L.T, 368 (Tri. -Bang.) and Keralam Enterprises v. CCE and S.T., Cochin reported in 2008 (9) S.T.R. 503 (Tri. -Bang.). He also submits that the demand of tax for the years 2000 -2001 to 2004 -2005 by show cause notice dt. 12 -9 -05 is barred by limitation.

(2.) AFTER hearing both the sides and on perusal of the records, we find that the Larger Bench of the Tribunal held that isolated activity of freight forwarding is also covered under C&F Operations and is taxable. So, it appears the amount received by the applicant for handling the goods is taxable. In any event, the contention of the ld.

(3.) COUNSEL is that the demand of tax is barred by limitation would be looked into at the time of appeal hearing. It is seen that there is a conflicting decision of the Tribunal, which is decided by the Larger Bench of the Tribunal. We find that the applicant already deposited a sum of Rs. one lakh. So, the applicant is directed to deposit further a sum of Rs. one lakh within six weeks. On deposit of the said amount, pre -deposit of balance amount of tax and penalties is waived till the disposal of the appeal. Compliance to be reported on 7 -7 -08.