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Issues:
1. Liability of Service Tax on business auxiliary services provided. 2. Time-barred demand for Service Tax. 3. Interpretation of agreements promoting services rendered by a company. 4. Prima facie case for waiver of amounts involved in the case. Analysis: 1. The case involved a dispute regarding the liability of Service Tax on services categorized as "Business Auxiliary Services" provided by the applicant, which were perceived as promoting the business of a specific company. The applicant argued that they should only be liable to pay Service Tax from 1-5-2006 when such activities were included in the Service Tax net. The contention was also raised that the demand was time-barred. The tribunal noted the contentious nature of the issue, highlighting the need to examine the definitions of "Business Auxiliary Services" and "banking and other financial services," along with the agreements in place between the applicant and the company. The tribunal concluded that a prima facie case for complete waiver of the amounts involved was not established by the applicant. 2. The tribunal considered the argument put forth by the applicant's counsel regarding the time-barred nature of the demand for Service Tax. However, the decision emphasized the need for a detailed examination of the agreements and services provided, indicating that such analysis would be conducted during the final hearing. Consequently, the tribunal directed the applicant to pre-deposit a specific amount within a stipulated timeframe, while allowing the waiver of pre-deposit for the remaining amounts subject to compliance. The recoveries of the outstanding amounts were stayed pending the appeal's disposal. 3. The dispute also revolved around the interpretation of agreements between the applicant and the company, which allegedly promoted the services offered by the company. The tribunal acknowledged the contentions from both sides regarding the nature of the services and the agreements in place. It was determined that a comprehensive review of the agreements and services provided would be crucial for the final decision, indicating that such scrutiny would occur during the subsequent proceedings. 4. In assessing the prima facie case for the waiver of the amounts involved, the tribunal carefully considered the arguments presented by both parties. The decision highlighted the complexity of the issue, particularly concerning the definitions of services and the agreements governing the business relationship. The tribunal's ruling underscored the necessity for the applicant to adhere to the specified pre-deposit requirement within the given timeline, emphasizing the importance of compliance for the subsequent consideration of the waiver request.
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