These appeals deal with common questions of facts and law emanating from Order-in-Appeal No.107/2005-ST dated 29.04.2005 passed by the Commissioner of Central Excise (Appeals), Bangalore and Order-in-Original No.57/Commr.LTU dated 17.07.2008 passed by the Commissioner of Central Excise & Service Tax, Large Tax Payers Unit, Bangalore. Both the orders impugned deal with liability to Service Tax of activities engaged in by M/s. Mysore Sales International Ltd. (MSIL for short), Bangalore, a State Government PSU, Inter alia, operating as custodian at the Air Cargo Complex, Bangalore. MSPL has been appointed as custodian of goods in international trade, transiting through the Airport.
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT BANGALORE
(1) Service Tax Appeal No.ST/61/2005
Arising out of Order-in-Appeal No.107/2005-ST Dated: 29.04.2005
Passed by the Commissioner of Central Excise (Appeals), Bangalore
Date of Decision: 21.12.2010
M/s MYSORE SALES INTERNATIONAL LTD
Vs
ASSISTANT COMMISSIONER OF CENTRAL EXCISE
SERVICE TAX DIVISION, BANGALORE
(2) Service Tax Appeal No.ST/63/2005
Arising out of Order-in-Appeal No.107/2005-ST Dated: 29.04.2005
Passed by the Commissioner of Central Excise (Appeals), Bangalore
COMMISSIONER OF CENTRAL EXCISE
SERVICE TAX COMMISSIONERATE, BANGALORE
Vs
M/s MYSORE SALES INTERNATIONAL LTD
(3) Service Tax Appeal No.ST/523/2008
Arising out of Order-in-Original No.57/Commr. LTU Dated 30.06.2008/17.07.2008
Passed by the Commissioner of Central Excise & Service Tax, Large Tax Payer Unit, Bangalore
M/s MYSORE SALES INTERNATIONAL LTD
Vs
COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, LTU, BANGALORE
Appellants Rep by: K S Ravi Shankar and N. Anand, Advs.
Respondents Rep by: D.P. Nagendra Kumar, JCDR
CORAM: M V Ravindran, Member (J)
P Karthikeyan, Member (T)
FINAL ORDER NOS. 1538 to 1540/2010
Per: P Karthikeyan:
These appeals deal with common questions of facts and law emanating from Order-in-Appeal No.107/2005-ST dated 29.04.2005 passed by the Commissioner of Central Excise (Appeals), Bangalore and Order-in-Original No.57/Commr.LTU dated 17.07.2008 passed by the Commissioner of Central Excise & Service Tax, Large Tax Payers Unit, Bangalore. Both the orders impugned deal with liability to Service Tax of activities engaged in by M/s. Mysore Sales International Ltd. (MSIL for short), Bangalore, a State Government PSU, Inter alia, operating as custodian at the Air Cargo Complex, Bangalore. MSPL has been appointed as custodian of goods in international trade, transiting through the Airport.
Appeal No. ST/523/2008: Impugned Order: OIO No. 57/Commr./LTU dated 30.06.2008
2. The impugned order confirmed differential Service Tax of Rs. 37,40,231/- plus interest found due from MSIL on the activities undertaken by it classified under ‘Storage and Warehousing Services’. This amount was short paid, as MSIL had classified the activities of baggage handling and export terminal charges during the period February, 2004 to September, 2005 wrongly under ‘Cargo Handling Services’. Of the various activities undertaken during the material period, only ground handling and cargo handling were liable to Service Tax under Cargo Handling Service, as per the order.
2.1. Vide the impugned order, the Commissioner found that MSIL had deliberately misclassified the services under Cargo Handling Services to avail exemptions provided under Cargo Handling Services in respect of passenger baggage and export cargo. He held that longer period provided under proviso to Section 73(1) of the Finance Act, 1994 (the Act) was rightly invocable in the case. He also imposed equal amount of penalty as the Service Tax demanded under Section 78 of the Act, penalty of Rs. 1000/- under Section 77 of the Act as well as penalty @ Rs. 200/- per day for every day during which the default continued or 2% of such tax per month whichever was higher for the delay starting from the first day after the due date till the date of payment. Appeal No. 523/2008 has been filed by MSIL seeking to vacate this order.
Appeal No.ST/61/2005; Impugned Order: OIA No.107/2005-ST dated 29.04.2005
3. While disposing a show-cause notice dated 30.06.2004 issued to MSIL, the Assistant Commissioner, Service Tax Division, Bangalore, confirmed the following amounts of Service Tax, applicable interest on the amount of Rs.26,01,981/- demanded and imposed a penalty of Rs.100/- per day for the period of delay in paying the Service Tax demanded under Section 76 of the Act.
A. Storage and warehousing services:-
