Case Law Details

Case Name : National Aviation Co. of India Ltd. Vs Commissioner of Service Tax, Mumbai (CESTAT Mumbai)
Appeal Number : Order No. S/492/2012/CSTB/C-I
Date of Judgement/Order : 27/03/2012
Related Assessment Year :


National Aviation Co. of India Ltd.


Commissioner of Service Tax, Mumbai 

Order No. S/492/2012/CSTB/C-I



MARCH 27, 2012


Ashok Jinal, Judicial Member

The application is filed by the applicant for granting waiver of pre-deposit of amount on service tax along with interest and various penalties imposed.

2. The facts of the case are that the applicants are engaged in the services of transporting of passengers embarking in India for International journey by ‘Airport Service’. The levy of service tax on the tickets issued by them for international journey came into effect from 01.05.2006. Therefore, the department was of the view that the applicants are required to pay service tax on charges collected by them for services rendered under the category of Transport of Passengers embarking in India for International Journey by Air Service’ from 01.05.2006 onwards. Therefore, a show-cause notice was issued by invoking extended period of limitation on 10.03.2010 for recovery of differential amount of service tax on the tickets sold for the journey carried out on or after 01.05.2006 and on the tickets sold prior to that. The matter was adjudicated, impugned demands were confirmed.

3. Heard both sides and have gone through the records placed before us.

4. On behalf of the applicants it is submitted that the demand is barred by limitation as they have furnished the required information in 2007 itself and audit also took place in the year 2007. Therefore, when all the relevant information was in the knowledge of the department, show-cause notice cannot be issued by invoking the extended period of limitation. He further submitted that from 01.05.2006, they are regularly paying the service tax on the tickets issued by them. He further submitted that the applicants are facing severe financial crisis and even they are not able to pay salary to their employees therefore, stay be granted.

5. On verification of the records, we find that the details submitted by the applicants on 14.05.2007, does not cover the amount of tickets sold prior to 01.05.2006 for the journey carried out on or after 01.05.2006. We find that this is a suppression of fact on the part of the applicants prima facie therefore, the extended period of limitation has rightly been invoked. We further find that there is no dispute on the liability of service tax. In view of the above observations, we find that the applicants have failed to make out a case for waiver of pre-deposit of amounts involved. Accordingly, we direct the applicants to make a pre-deposit of the entire amount of service tax within eight weeks from today. On such deposit, pre-deposit of interest and various penalties shall stand waived and recovery thereof stayed during pendency of the appeal. Failure to comply with this direction shall result in vacation of stay and dismissal of appeal without prior notice.

6. Compliance is to be reported on 13.06.2012

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