2011 (2) TMI 560 - AT - Service Tax

Waiver of pre-deposit - Business Auxiliary Service (BAS) - The contention is that if the applicant is able to sell certain quantity of liquor they are getting some discounts from their supplier and these discounts cannot be treated as income from BAS - Held that applicant has a strong case in their favour therefore pre-deposit of the amount of Service Tax and penalty are waived and recovery of the same is stayed till the disposal of the appeal - Decided in favor of the assessee

Summary

The Appellate Tribunal CESTAT, Bangalore heard a case regarding waiver of pre-deposit of Service Tax and penalty amounting to Rs. 5,53,758 for a business providing Business Auxiliary Service (BAS) in the hotel industry. The applicant argued that discounts received from liquor suppliers should not be considered as BAS income. The Tribunal found in favor of the applicant, waiving the pre-deposit and penalty amount until the appeal's disposal.