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2015 (11) TMI 1257 - AT - Service TaxWaiver of pre deposit - Demand of service tax - Business Auxiliary Service - Held that:- Prima-facie, collection of tax cannot be said to be a service provided by Government. Therefore, the demand relating to the commission received by the appellant for collection of sales tax on behalf of the Government would not fall under BAS as defined in Section 65(19) of the Finance Act, 1994, because the appellant did not provide promotion or marketing of service provided by the client, nor did it provides customer care on behalf of the client. It also did not provide any relation to procurement of goods or services which were inputs for the client or provision of service on behalf of the client. It has been held by the Supreme Court in the case of D. K. Trivedi & Sons vs. State of Gujarat - [1986 (3) TMI 328 - Supreme court of india] that royalty is a tax and therefore the above reasoning given in respect of collection of sales tax applies to the component of demand pertaining to commission received for collection of royalty on mines for onward remittance to the State of Rajasthan. - appellant has a good case for waiver of pre-deposit, Accordingly, we waive the requirement of pre-deposit and stay recovery of the impugned liability during pendency of the appeal. - Stay granted.
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