2009 (8) TMI 741 - AT - Service Tax

Waiver of pre-deposit - business auxiliary services - Appellant is doing the body building work - Revenue s contention is that activities carried out by the Appellant were support further activity carried out - whole of such activity shall be business auxiliary service Held that - bringing the Appellant to the category of business auxiliary service is questionable - direct that there shall be waiver of pre-deposit during pendency of Appeal

Summary

The Appellate Tribunal CESTAT, New Delhi, in the case of 2009 (8) TMI 741, heard an appeal represented by S/Shri B.L. Narasimhan and Vivek Sharma, Advocates, for the Appellant and Shri Sansar Chand, DR, for the Respondent. The issue at hand was whether the service provided by the Appellant to M/s. JCBL constituted 'business auxiliary services' or was merely processing of goods. The Revenue argued that the activity was business auxiliary service, while the Appellant contended that it was not and should not be taxed as such. The Tribunal noted that the Appellant's activity of body building vehicles using materials supplied by the contractee raised questions about its classification as business auxiliary service. The Tribunal decided to waive the pre-deposit during the pendency of the appeal and refrained from expressing a final opinion on the matter at that stage. The case was heard by S/Shri D.N. Panda, Member (J), and Rakesh Kumar, Member (T). The judgment was dictated and pronounced in open court.