Waiver of pre-deposit in service tax dispute on sales commission for arranging vehicle loans, based on prima facie applicability of a notification

Service tax demand on sales commission for arranging vehicle loans was challenged on the basis that an earlier Bench ruling had applied Notification No. 25/2004-C.E. in an identical matter. On a prima facie examination of the notification and the submissions, the Bench found substance in the appellants' contention and treated the cited stay order as applicable on the facts. The appellants were therefore granted waiver of pre-deposit and stay of recovery pending disposal of the appeal.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery in respect of the service tax demand raised on sales commission received for arranging vehicle loans.

Analysis: The appellants relied on an earlier Bench ruling holding that the benefit of Notification No. 25/2004-C.E. was available in an identical matter. On a prima facie examination of the submissions and the notification, the Bench found substance in the appellants' contention and considered the cited stay order applicable to the facts of the case.

Conclusion: The appellants were entitled to waiver of pre-deposit and stay of recovery pending disposal of the appeal.

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