Waiver granted for service tax & cess on foreign exchange profits by bank. Stay on recovery.

The Appellate Tribunal CESTAT, Chennai granted waiver of pre-deposit of service tax and cess on profit from foreign exchange transactions by a bank. The Tribunal considered a prima facie case presented by the assessees, referencing Circular No.92/3/2007-ST and a prior Tribunal's stay order. Recovery of the disputed amounts was stayed pending the appeal. (Order pronounced on 20.06.2011)

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The Appellate Tribunal CESTAT, Chennai heard an application for waiver of pre-deposit of service tax and cess on profit earned from foreign exchange transactions by a bank. The demands were confirmed under Section 65(12) of the Finance Act, 1994. The Tribunal waived the pre-deposit based on a prima facie case made by the assessees, citing Circular No.92/3/2007-ST and a previous Tribunal's stay order. Recovery of the amounts in dispute was stayed pending the appeal. (Operative portion of the order pronounced on 20.06.2011)

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