2008 (1) TMI 252 - AT - Service Tax

Demand was confirmed after treating the applicants as provider of business auxiliary service - Contention is that the demand is for the period July 2007 to December 2004 and up to September 2004 there was exemption notification which provides exemption to the provider of business auxiliary service regarding service on behalf of his client tax duly paid after September 2004 - condition of pre-deposit of Service tax and penalty is waived - Stay application is allowed.

Summary

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the applicants for waiver of pre-deposit of service tax and penalty. The demand was for the period July 2007 to December 2004, and the applicants were considered providers of business auxiliary service. They argued that there was an exemption notification until September 2004. As they paid service tax after September 2004, the tribunal waived the pre-deposit condition for service tax and penalty. Stay application was allowed.