Salem Starch and Sago Vs. Commr. of C. Ex. - Court Judgment

Excerpt:

.....29,90,044/-.the only contention raised before us in support of the application is that the applicants even if considered as consignment agent under section 65(16) of the service tax act (sic) are not rendering taxable service within the meaning of sub-section 72(j) thereof in relation to the clearing and forwarding operations.2. prima facie, it appears from the record that the goods of the members of the applicants' society are received in the premises of the society and sale is conducted by the society on behalf of the members in respect of such goods with an obligation on the buyer whose bid is accepted and confirmed by the owner of the goods to take away the goods from the premises of the society. it would, prima facie, appear that no clearing and forwarding activity was carried out in the process of sale of the goods of the society. the applicant has, therefore, made out a case for waiver of pre-deposit. an amount of rs. 10,33,178/- is already deposited and the learned counsel for the applicants prays for waiver of the rest of the amount. we are of the view that the amount so deposited will be treated as pre-deposit and the rest of the pre-deposit amount is waived. the.....

Judgment:

1. The applicant seeks stay of the impugned order dated 30-12-2004 praying for waiver of pre-deposit of service tax of Rs. 29,90,044/-.

The only contention raised before us in support of the application is that the applicants even if considered as consignment agent under Section 65(16) of the Service Tax Act (sic) are not rendering taxable service within the meaning of Sub-section 72(J) thereof in relation to the Clearing and Forwarding operations.

2. Prima facie, it appears from the record that the goods of the Members of the applicants' Society are received in the premises of the Society and sale is conducted by the Society on behalf of the Members in respect of such goods with an obligation on the buyer whose bid is accepted and confirmed by the owner of the goods to take away the goods from the premises of the Society. It would, prima facie, appear that no clearing and forwarding activity was carried out in the process of sale of the goods of the Society. The applicant has, therefore, made out a case for waiver of pre-deposit. An amount of Rs. 10,33,178/- is already deposited and the learned Counsel for the applicants prays for waiver of the rest of the amount. We are of the view that the amount so deposited will be treated as pre-deposit and the rest of the pre-deposit amount is waived. The appeal will be placed for final hearing on 28-6-2005. The application stands disposed of accordingly.