CESTAT Bangalore: Pre-deposit waived, stay on recovery granted for disputed service tax demand

The Appellate Tribunal CESTAT Bangalore waived the pre-deposit requirement for an appellant who had paid Rs. 1,00,000 of the Rs. 3,63,396 service tax demanded. The tribunal deemed the demand for service tax on penal interest collected by the appellant unsustainable and granted a stay on recovery during the appeal process.

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The Appellate Tribunal CESTAT Bangalore waived the requirement of pre-deposit for an appellant who had deposited Rs. 1,00,000 out of the demanded service tax of Rs. 3,63,396. The tribunal found the demand of service tax on penal interest collected by the appellant not sustainable. Stay against recovery was granted during the appeal's pendency.

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