ORDER
S.L. Peeran, Member (J)
1. The appellants are required to pre-deposit Rs. 1,21,143/-and penalty of Rs. 100/- per day. They are covered under Service Tax in the category of Customs House Agent (CHA). They were paying the Service Tax in terms of the Trade Notice No. 5/97-S.T., dated 12-6-97 and had deducted 15% on the value of the taxable service. However, the Revenue has proceeded to deny the benefit of the said Trade Notice on the ground that in cases where CHA undertakes turnkey export and import, where the lumpsum amount is charged from the customers for undertaking various services, then in such cases they are liable to pay the service tax on 15% of the lumpsum amount charged to their customers.
2. The learned Counsel submits that they have followed the Trade Notice and there is no deviation. It is further submitted in respect of exports done through Port Trust, the appellants are required to pay export dues to the Port Trust, which is a statutory levy, on which the Port Trust pays service tax. Therefore, they had rightly calculated the amounts and denial of the benefit is not justified.
3. Heard learned JDR in the matter.
4. We have perused the records, impugned order and Trade Notice including the evidence produced in the form of the invoice where the appellants have paid Service Tax on the value of taxable service at 15%. Prima facie, the appellants have followed the procedure correctly and rightly paid the Service Tax. The Department’s claim for denying the Trade Notice is required to be seen only at the final stage. At this stage as the appellants have already discharged the duty, hence, the stay application is allowed by granting full waiver of pre-deposit and staying its recovery till the disposal of the appeal. Appeal to come up in its turn.
(Pronounced and dictated in open Court)