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2010 (1) TMI 274 - HC - Service TaxPenalty – stay of pre deposit - programme producer - programme production service - Tribunal had directed the petitioner to pre-deposit Rs. 50,00,000/-, whereas the amount of penalty was imposed in the sum of Rs. 2.25 crores - Subsequently, the petitioner filed modification application praying for reduction in the quantum of pre-deposit to the extent of 10% of the penalty. - Tribunal did not accept the prayer – the petitioner had produced the programme on its own account and not on account of any other person, as such, the petitioner was erroneously brought within the net of Service tax. - the petitioner had recovered the Service tax from its clients under the erroneous belief that they are required to pay Service tax. Provisions of the Act mandate them to pay the Service tax to the Department regardless of the fact whether or not the petitioner was liable to pay Service tax in view of Section 73A of the Finance Act, 1994. As such, the petitioner was advised not to challenge its liability to pay the Service tax. That is how they paid the Service tax together with interest. - Held that: without interfering with the order, interest of justice would be served by substituting the condition of pre-deposit in cash with that of the Bank Guarantee – petitioner directed to furnishing Bank guarantee of any nationalized bank within a period of four weeks
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