2008 (6) TMI 101 - AT - Service Tax

CESTAT exempts appellant from pre-deposit for service tax on business auxiliary services

The Appellate Tribunal CESTAT NEW DELHI waived the pre-deposit of service tax and penalty for an appellant providing business auxiliary services to a ... Demand confirmed treating the applicant as provider of business auxiliary service to the financial company - applicant entered into an agreement with the finance company to promote their retailer finance - In the appeal memo the contention is that applicants are entitled for exemption under notification No. 14/04 & 25/04 and also that the services were provided by the applicant on behalf of the finance company and not to the finance company –Stay petition is allowed The judgment by Appellate Tribunal CESTAT NEW DELHI involved a waiver of pre-deposit of service tax and penalty for an appellant who had already paid 50% of the tax amount. The appellant was considered a provider of business auxiliary service to a financial company, but argued for exemption under specific notifications. The tribunal found the amount already paid to be sufficient and waived the remaining pre-deposit.