CESTAT Chennai: Service Tax Pre-deposit Waived & Recovery Stayed

The Appellate Tribunal CESTAT, Chennai waived the pre-deposit of Service tax amounting to Rs. 98,57,126 confirmed under 'Banking and other financial services' due to lack of evidence connecting the amounts collected from individual borrowers to loans granted. The Tribunal also stayed the recovery pending the appeal.

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The Appellate Tribunal CESTAT, Chennai heard the application for waiver of pre-deposit of Service tax of Rs. 98,57,126/- confirmed under 'Banking and other financial services.' The tax was confirmed on various amounts collected from individual borrowers, but there was no evidence connecting these amounts to loans granted. As a result, the Tribunal waived the pre-deposit and stayed recovery pending the appeal.

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