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2014 (11) TMI 754 - AT - Service TaxWaiver of pre deposit - hire purchase and financial lease service - Held that:- On perusal of the decision of the Hon'ble Apex Court in the case of Association of Leasing & Financial Service Companies Vs. Union of India (2010 (10) TMI 4 - SUPREME COURT OF INDIA), various provisions of Finance Act, and Service Tax Rules. Prima facie we do agree with the contention of the Ld. Counsel for the applicant that applicant is engaged in the activity of giving loan for earning interest through leasing the vehicles under financial leasing services. As per explanation to Section 67 of the Finance Act, 1994. - Interest on loan is exempted from service tax is not to be included in the taxable service and same has been followed by Rule 6 (2)(iv) of the Service Tax Valuation Rules, 2006. In these circumstances, prima facie we find that applicants have made out a case for complete waiver of pre-deposit. Therefore, we waive the requirement of pre-deposit of entire amount of service tax, interest and penalty and stay recovery thereof during the pendency of the appeals - Stay granted.
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