National Aviation Co. Of India Ltd vs Commissioner Of Service Tax

IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL,WEST ZONAL BENCH AT MUMBAI

COURT No. I

APPEAL No.ST/387/10

(Arising out of Order-in-Original No.6-7/STC-I/BR/10/11 dated 10/05/2010 passed by Commissioner of Service Tax-I, Mumbai)

For approval and signature:

Honble Mr.M.V. Ravindran, Member (Judicial) Honble Mr. Raju, Member (Technical)

1. Whether Press Reporters may be allowed to see :No the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2. Whether it should be released under Rule 27 of the :Yes CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3. Whether Their Lordships wish to see the fair copy :Seen of the Order?

4. Whether Order is to be circulated to the Departmental :Yes authorities? ========================================

National Aviation Co. of India Ltd., Appellant Vs. Commissioner of Service Tax, Respondent Mumbai

Appearance:

Shri.Piyush Chhajed, CA for appellant Shri.K.S. Mishra, Addl. Comm. (AR), for respondent

CORAM:

Honble Mr. M.V. Ravindran, Member (Judicial) Honble Mr. Raju, Member (Technical)

Date of Hearing : 15/07/2015 Date of Decision : 15/07/2015

ORDER NO

Per: M.V. Ravindran

1. This appeal is directed against Order-in-Original No.6-7/STC-I/BR/10/11 dated 10/05/2010 passed by Commissioner of Service Tax-I, Mumbai.

2. Heard both sides and perused the records.

3. On perusal of the records, we find that the issue is in a narrow compass, inasmuch as by two show-cause notices demands of Rs.95.89 crores and Rs.93.29 crores have been raised under the category of transportation of passengers by air against the appellant. The appellants case is that such demands cannot be raised as these amounts, which have been received from the Government of India, through the Ministry of Civil Aviation for operation of flights of Haj or specific direction of the Government of India. The matter was under consideration between the two Ministries of Government of India and finally it was agreed that the appellant is required to pay service tax liability. Accordingly, amounts were released by the Government of India. We find from the records that the appellant had deposited the amount of Rs.95.89 and Rs.83.29 in respect of both the show-cause notices. It is the claim of the appellant that the balance of Rs.10 crores in the case of second show-cause notice also stands deposited subsequently, a fact which needs verification by the lower authorities. Since the entire amount stands deposited, we hold that the appeal needs to be disposed of upholding the impugned order as to the taxability of the services rendered.

4. The taxability is upheld but as the amounts have already been deposited on the question of interest on appellants, we hold it has to be discharged in accordance with provisions of Section 75 of the Finance Act, 1994. Since the appellants have already been given relief by the adjudicating authority by dropping the proceedings for imposition of penalties and the Revenue is not in appeal against such dropping of penalties, we uphold that portion of the order as uncontested.

5. Accordingly, the appeal is disposed of by upholding the demand of taxability and interest thereon and remanded back to the adjudicating authority for a limited purpose of verification of deposit of the balance amount of Rs.10 crore in respect of the said show-cause notice.

(Dictated in Court)

(Raju) Member (Technical) (M.V. Ravindran) Member (Judicial)

pj

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