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2014 (5) TMI 803 - HC - Service TaxWaiver of pre deposit - service tax on chit funds - Whether despite divergent views of two High Courts on the same issue, the Tribunal was right in holding that the Appellant has not made out a prima facie case and therefore directing the Appellant to deposit additional ₹ 30 lakhs to make the entire amount of assessed duty liability deposited at the Stay stage - Held that:- Even if there is a provision in the Finance Act, it will not applied to all forms of cash management and it would not be liable to service tax. That was a case dealt with and in the context of chit funds. The Andhra Pradesh High Court's judgment was holding the field. It was cited before the Kerala High Court but a learned single Judge of the Kerala High Court has taken a different view. To our mind, when there were two views before the tribunal and on a legal point, then, a prima facie case was made out and for waiver of pre-deposit. Moreso , when the appellant has already deposited a sum by way of service tax and by way of interest. In such circumstances, the amount was substantially secured. In the light of the legal argument canvassed and it requiring serious consideration, this was a fit case where the demand for balance deposit could have been waived - Stay granted.
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