2007 (4) TMI 96 - AT - Service Tax

Stay/Dispensation of pre-deposit - Revenue has interpreted the agreement as appellant receiving commission and has brought the terms of agreement under the category of Business Auxiliary Services - Held that the revenue contention is not correct and stay application allowed by granting waiver of pre-deposit

Summary

The Appellate Tribunal CESTAT, Bangalore allowed the appellant's stay application, waiving the pre-deposit of Rs. 3,42,251. The tribunal found that the appellant and M/s. Geojit Infofin Technologies Ltd. were engaged in a joint business activity, sharing profits and losses in a 75:25 ratio. The agreement was not considered as promoting business on a commission basis.