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2013 (11) TMI 1403 - CESTAT MUMBAIDemand of service tax - General Insurance Business service - Waiver of pre deposit of duty, interest and penalty - CBEC has earlier clarified that the activity is not taxable, later on, after reconsideration, clarified that the activity is taxable - Assessee contends that letter was prospective in nature therefore demand for the earlier period is not sustainable - Held that:- applicants were corresponding with the Board of Customs & Central Excise. Earlier the applicants were asking for exemption from service tax which was declined vide letter dated 05.01.2009. The matter was again taken up with the Board and the Board vide letter dated 24.02.2009 conveyed to the applicants that the applicants are not performing taxable service of General Insurance Business and not liable under the taxable service of General Insurance Business service. The Board has reviewed its earlier decision which was conveyed to the applicants vide letter dated 20.09.2011 whereby it has been decided that the applicants are providing taxable service. Show Cause Notices were issued in view of the letter dated 20.09.2011. In view of the earlier letter dated 24.02.2009, whereby it was conveyed that the applicants are not liable for service tax under the category of General Insurance Business, prima facie, the applicants have a strong case for waiver of pre-deposit of dues - Stay granted.
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