ORDER
M.V. Ravindran, Member (J)
1. This stay application is for the waiver of pre-deposit of an amount of service tax of an amount of Rs. 35,83,000/- (Rupees Thirty Five Lakhs Eighty Three Thousand only) and
2. The issue involved in this case is regarding the taxability of the services rendered by the applicant. It is the department case that the applicant is covered under category of the C&F agent while the applicant has denied it. The learned advocate for the applicant submits the issue is squarely covered by the Larger Bench decision in the case of L&T Limited in Final Order No. 1-9/06. It is his submission that the applicant is not at all handling the goods, to get covered under the purview of C&F Agent. That various agreements indicate that they act nothing but commission agent, involved in the procuring orders for principal. It is his submission that there is financial hardship for the applicant in this case in as much as there is reduction of the profit from the year ended 31-3-2005.
3. Learned DR on the other hand submits that the issue involved in this case little bit more than mere procurement of the order. It is his submission that the applicant is collecting payments and is also arranging to collect statutory forms etc. from the manufacturer for the supply of the orders executing. This itself would cover more activity then mere procurement of orders.
4. Considered the submissions made at length by both sides and perused records. We find, an mere perusal of the agreements indicates to the fact that applicant is also engaged in collecting of payments and is chargeable to interest if the payment is not received within the specific time. We also find that the applicant is required to travel extensively and for which reimbursement is made by the principal. Considering these facts, the applicant has not made out a prima facie case for complete waiver of the amount confirmed. Applicant is directed to pre-deposit a sum of Rs. 5,00,000/- (Rupees Five Lakhs only) within four weeks from today and report compliance on 16th November, 2006. Subject to such compliance being reported, the pre-deposit of the balance amount of duty and penalties are waived and recovery thereof stayed till the disposal of the appeal.
(Dictated and pronounced in the open court)