Tribunal grants waiver in Service Tax case, appellant relieved from payment.

The Tribunal granted a complete waiver of pre-deposit to the appellant in a case concerning the demand of Service Tax under Business Auxiliary services. The appellant, engaged in the sale of CNG under an agreement with IGL, successfully argued that their operations were on a principal to principal basis, akin to sales of goods, not falling under the category of business auxiliary services. As a result, the appellant was relieved from paying the demanded amount of Rs. 65,59,509/- along with interest and penalty of Rs. 5000/- during the appeal process.

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Issues:
Waiver of pre-deposit of demand of Service Tax under Business Auxiliary services.

Analysis:
The appellant sought a waiver of pre-deposit of demand of Service Tax amounting to Rs. 65,59,509/- along with interest and penalty of Rs. 5000/- imposed on them under the category of Business Auxiliary services. The case revolved around an agreement with IGL for the sale of CNG where the equipment dispensing gas remained owned by IGL, and the appellant received a commission for the sale. The Revenue demanded service tax from the appellant under the category of business auxiliary services, considering them as agents for promoting and marketing goods supplied by IGL. The appellant contended that they operated on a principal to principal basis and were not liable for service tax, citing precedents where similar transactions were considered as sales of goods on a principal to principal basis. The Revenue argued that the appellant was involved in selling on a commission basis, falling under the category of business auxiliary services. After considering the submissions and analyzing the agreement and the impugned order, the Tribunal found that the appellant's case was similar to previous judgments where transactions were treated as sales of goods, not services under business auxiliary services. The Tribunal granted a complete waiver of pre-deposit, allowing the appellant to avoid payment of the entire amount of service tax, interest, and penalty during the appeal process.

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