2013 (1) TMI 47 - AT - Service Tax

Waiver of pre-deposit - Stay of recovery - Business Auxiliary Service - Money Transfer and related services - The assessee were distributing the money to the customers of Western Union money transfer in India - Held that - Following the decision in case of MUTHOOT FINCORP LTD.(2009 (8) TMI 236 - CESTAT BANGALORE) that the services rendered by appellant directly to principal abroad whose beneficiaries are outside India are not taxable service in India. Therefore pre-deposit of the dues are waived and recovery of the same is stayed. In favour of assessee

Summary

The Appellate Tribunal CESTAT Mumbai allowed the stay petition and waived the pre-deposit of Service Tax amount of Rs.1,19,39,483/-, interest, and penalty for the appellant. The Tribunal held that the services provided by the appellant to a principal abroad, whose beneficiaries are outside India, are not taxable services in India based on a previous decision. Recovery of dues is stayed during the appeal process.