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2014 (6) TMI 98 - AT - Service TaxWaiver of pre deposit - Remittion of service tax consequent on under-disclosure of the total consideration received for providing the taxable ‘banking and other financial’ services - Held that:- so far as operating lease/ hire purchase transactions are concerned, on which demand of Rs. 35,47,359/- is confirmed, that Notification No. 4/2006-ST dated 01.03.2006 has exempted levy of service tax to the extent of 90% on financial leasing services including equipment leasing and hire purchase as defined in Section 65(12)(i) of the Act and on the interest component received on these transactions. The benefit of this exemption was claimed before the adjudicating authority, who adverted to the claim but failed to deal with the same and simply assessed tax on this aspect at the full rate. It is contended by ld. Counsel for the appellant and this contention is not disputed by that ld. DR that tax liability on operating lease/ hire purchase transactions, if taxable and after granting the benefit of exemption Notification No. 4/2006-ST would be about Rs. 40,000. Prima-facie invocation of the extended period is not justified. We therefore grant waiver of pre-deposit and stay of all further proceedings for recovery of the adjudicated liability, on condition that the appellant remits Rs. 2 lakhs (comprising the interest demand on cenvat credit availed plus the service tax payable (after exemption benefit) on operating lease/ hire purchase) within four weeks - stay granted partly.
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