Appellate Tribunal overturns tax demand & penalty, remands case for verification.

The Appellate Tribunal CESTAT, Mumbai allowed the appeal, setting aside the lower authorities' order confirming tax demand and penalty. The case was remanded for further verification due to the service provider depositing the service tax in a non-designating bank before transfer to the appropriate bank branch. No penalty was imposed, and the appeal was allowed for remand to the original authority.

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The Appellate Tribunal CESTAT, Mumbai found that the service provider deposited the entire amount of service tax in a non-designating bank, which was later transferred to the appropriate bank branch. The lower authorities' order confirming the tax demand and penalty was set aside, and the case was remanded for further verification based on a Pay Accounts office letter dated 3-4-2003. No penalty was imposed. Appeal allowed for remand to the original authority.

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