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2014 (12) TMI 668 - CESTAT AHMEDABADStay application - banking and financial services - Conflicting decisions - Held that:- Tax liability has been confirmed on the ground that the appellant has accepted pre-payment charges towards the settlement of the loan extended to their customers. We find that in the appellants own case, the co-ordinate bench of the Tribunal has taken a view holding that such activity of fore-closure of the loan does not attract Service Tax liability. This bench in the case of HUDCO has taken a diagonically opposite view after considering the judgment in the case of Small Industries & Development Bank of India (2011 (1) TMI 495 - CESTAT, NEW DELHI). Since there are two different views expressed by two different benches, we are constrained to refer the matter to Hon’ble President for constituting a Larger Bench to decide as to which view is correct. Since the appellant has already deposited the amount of Service Tax liability, interest and 25% of the tax liability and as we have referred the matter to Larger Bench, we consider the amount deposited by the appellant as enough deposit to hear and dispose the appeal on merit. Accordingly, application for waiver of pre-deposit of the balance amounts involved is allowed and recovery thereof stayed till the disposal of appeal. - Stay granted.
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