2011 (8) TMI 241 - AT - Service Tax

Waiver of pre-deposit - Banking and other Financial services - principles of natural justice - the issue, prima facie, is covered by the decisions of this Bench in the case of Saurin Investments Pvt. Ltd. Vs. CST Ahmedabad (2009 -TMI - 35213 - CESTAT, AHMEDABAD) - Since the appeal is dismissed for non-compliance, we remand the matter to Commissioner(Appeals), to reconsider the issue afresh without insisting for any pre-deposit, as we have already recorded that the issue is prima facie covered by the decisions of this Bench - Stay Petition as also appeal gets disposed of

Summary

Issues Involved:
- Waiver of pre-deposit of Service Tax
- Service Tax liability of the appellant under Stock Broker services/Banking services
- Non-payment of Service Tax liability on NSE/BSE transaction charges

Analysis:

1. Waiver of Pre-deposit of Service Tax:
The appellant filed a Stay Petition seeking waiver of pre-deposit of Service Tax amounting to Rs.5,80,450 along with interest and penalties under various sections of the Finance Act, 1994. The Tribunal, after hearing both sides and examining the records, allowed the application for waiver of pre-deposit based on previous decisions of the Bench in similar cases. The appeal was remanded to the Commissioner(Appeals) for reconsideration without insisting on any pre-deposit, ensuring the principles of natural justice are observed.

2. Service Tax Liability under Stock Broker/Banking Services:
The main issue in the appeal was the Service Tax liability of the appellant under the category of Stock Broker services/Banking services. The appellant argued that NSE/BSE transaction charges should not be included in the gross value of taxable services rendered, citing precedents such as Rajvi Stocking Broking Ltd and Saurin Investments Pvt. Ltd. The Tribunal found that the issue was prima facie covered by the decisions of the Bench in those cases, leading to the allowance of the waiver of pre-deposit and remand of the matter to the Commissioner(Appeals) for a fresh consideration.

3. Non-payment of Service Tax on NSE/BSE Transaction Charges:
The appellant's appeal was initially dismissed by the Commissioner(Appeals) due to non-compliance with the pre-deposit order. However, the Tribunal, after reviewing the submissions and findings, decided to grant the waiver of pre-deposit and remand the matter for reconsideration without the need for pre-deposit. This decision was based on the Tribunal's view that the issue was covered by previous decisions and the principles of natural justice must be followed in the reconsideration process.

In conclusion, the Tribunal's judgment addressed the issues of waiver of pre-deposit of Service Tax, Service Tax liability under specific categories, and non-payment of Service Tax on transaction charges. The decision was based on the application of legal principles from previous cases and ensuring fairness and natural justice in the reconsideration process by the Commissioner(Appeals).