2009 (6) TMI 200 - AT - Service Tax

The demand arises as a result of holding that the appellants are liable to pay tax under the category of GTA during the period Jan. 5 to Aug. 6. - The applicants have made out a strong prima facie case for waiver on the basis of fact that the consignees had discharged the service tax liability as borne out from several letters from consignees - If the Commissioner sitting in revision was not satisfied with the material produced by the appellants he could have called upon them to produce proof of actual payment of service tax by the different paper mills. Prima facie the submission of the appellants based upon the letters that service tax liability has been borne by the consignees seems to be correct. stay granted

Summary

The Appellate Tribunal CESTAT, Chennai heard an application for waiver of pre-deposit of service tax and penalty amounting to Rs. 50,399. The demand was due to the appellants being held liable to pay tax under the category of GTA from Jan.'5 to Aug.'6. The tribunal found a strong prima facie case for waiver based on evidence that consignees had already paid the service tax liability. Therefore, the tribunal waived the pre-deposit and penalty, staying the recovery pending the appeal.