APSRTC Vs. COMMISSIONER OF CENTRAL EXCISE, HYDERABAD

JUDGEMENT

(1.) THE appellant is required to pre -deposit Rs. 9.38 crores under Section 75 of the Finance Act, besides penalty of Rs. 5,61,58,221/ - under Section 78 of the Finance Act and separate penalties under Sections 76 and 77 of the Finance Act in terms of the impugned order.

(2.) THE appellant is a State Govt. undertaking and were engaged in providing various transport services all over the State of Andhra Pradesh and they were also providing services falling under Mandap keeper services and have taken service tax registration. They were providing various chartered/contract carriage/tour services apart from operating stage carriage buses. The chartered services provided by them include supply of buses to the private parties on hire basis for the purpose of pilgrimage, marriages, leisure travel, meeting excursions etc. They were made available on the basis of (i) casual contract, (ii) Inter -State casual contract, (iii) Chartered contract services. They had obtained temporary contract carriage permits and special permits as per requirement from the transport authorities. In the case of Chartered contract services such as regular pick -up and dropping services provided to industries, institutions, public sector undertakings etc., no contract carriage permit is obtained though the services are purely on contract and buses are operated on the strength of stage carriage permits. Therefore the department, taking into consideration the transport services provided by the appellants have held that they have not paid service tax under the category of tour operator services and after due consideration has confirmed the demand.

(3.) LEARNED Consultant appearing for the appellants submits that a similar matter came up before this Bench and this Bench by Stay Order No. 955/08, dated 10 -9 -2008 has directed the appellants to pre -deposit Rs. 50,00,000/ - as against the total demand of more than Rs. 3.97 lakhs. He submits that appellants are faced with severe financial hardship and have undergone huge losses. Therefore he submits that they will deposit Rs. 25 lakhs if time is given to them.