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Issues involved: Stay petition against waiver of pre-deposit of duty, interest, and penalties u/s 76, 77, and 78 in a Service Tax case involving inclusion of discount received from electronic media.
Summary: The Appellate Tribunal CESTAT Bangalore considered a stay petition challenging the waiver of pre-deposit amounts including duty, interest, and penalties under various sections. The issue revolved around the inclusion of a discount received by the appellant from electronic media in the Service Tax liability. The Tribunal noted that the appellant had already discharged the Service Tax liability on service charges collected from clients. Citing a previous decision, the Tribunal found that the inclusion of the discount amount for Service Tax liability seemed incorrect. Consequently, the Tribunal granted a waiver of pre-deposit and stayed the recovery of the amounts until the appeal was disposed of. In detail, the confirmation of the demand of Service Tax arose from the appellant not discharging the Service Tax liability on the commission received from advertisement media. The appellant contended that they received a discount from electronic media and paid 85% of the amount charged by print media along with Service Tax. The issue was whether the discount received should be included for discharging the Service Tax liability. The Tribunal found that the appellant had already paid Service Tax on service charges collected from clients, making the inclusion of the discount amount for Service Tax liability incorrect. This view was supported by a previous decision of the Tribunal in a similar case. The Tribunal considered submissions from both sides and reviewed the records. It was noted that the appellant had discharged the Service Tax liability on service charges collected from clients. Therefore, the inclusion of the discount amount from electronic media for Service Tax liability was deemed incorrect. Citing a previous decision, the Tribunal found that the appellant had made a prima facie case for waiver of pre-deposit. As a result, the Tribunal waived the pre-deposit amounts and stayed the recovery until the appeal was disposed of. The decision was pronounced in court on 25-9-2009.
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