High Court modifies order requiring bank guarantee for appeal

The High Court of Bombay modified the order, mandating the petitioner to provide a bank guarantee of Rs.25 lakhs for the appeal to proceed before the Tribunal within six months. The Tribunal will determine the specifics of the bank guarantee. The petitioner's liability for service tax may be negated based on a Supreme Court judgment in a specific case.

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The High Court of Bombay modified the order to require the petitioner to submit a bank guarantee of Rs.25 lakhs for the appeal to be heard on merit by the Tribunal within six months. The Tribunal will make an appropriate order regarding the bank guarantee. The petitioner may not be liable to pay service tax based on the judgment of the Supreme Court in the case of "Bharat Sanchar Nigam Ltd. Vs. Union of India, 2006 (2) S.T.R. 161(S.C.)".

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