2010 (8) TMI 424 - AT - Service Tax

Waiver of pre-deposit - franking charges being in the nature of postal charges in lieu of postage stamps for which direct payments are being made by the appellant s clients to the post office, cannot form part of the taxable value in the hands of the appellants - rebate of franking charges received by the appellants from the post office cannot be also prima facie considered as a charge received from the clients for the services rendered to the clients - appellants have made out a prima facie case for full waiver of the pre-deposit during the pendency of the appeal

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellants engaged in mailing services, stating that franking charges paid directly to postal authorities by clients are not taxable. The tribunal waived the pre-deposit requirement during the appeal process. (2010 (8) TMI 424 - CESTAT, CHENNAI)