2010 (11) TMI 155 - AT - Central Excise

Waiver of pre-deposit - Business Auxiliary Service - The applicants have made out strong prima facie case for total waiver for the reason that as per Explanation (zzzm) of Section 65 (105) of the Act sale of space for advertisement in print media is exempted from levy of service tax and it cannot be disputed that even if the applicants promote the business of the newspapers by canvassing advertisements the result is sale of space in newspapers for advertisement - pre deposit waived.

Summary

The Appellate Tribunal CESTAT, Chennai heard the application for waiver of pre-deposit of service tax of Rs. 53,40,000/- along with interest and penalty of Rs. 55 lakhs. The demand was confirmed due to the activity of canvassing advertisements falling under "Business Auxiliary Service". However, the Tribunal waived the pre-deposit as sale of space for advertisement in print media is exempted from service tax, and the promotion of newspapers through advertisements results in sale of space. Recovery of the amounts was stayed pending appeal.