2011 (7) TMI 820 - AT - Service Tax

Waiver of pre-deposit - Taxation of Service (Provided from Outside India and Received in India) Rules, 2006 - Rule 3(ii) - Held that there is no evidence on record that the service has been partly performed in India - Decided in favor of the assessee

Summary

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the applicant for waiver of pre-deposit of Service Tax of Rs. 99,436/-, interest, and penalty. The demand was confirmed based on the applicant receiving services from a foreign service provider under Section 66A of the Finance Act. However, the applicant argued that the services were not partly performed in India as required by the Taxation of Service Rules, 2006. As there was no evidence of partial performance in India, the Tribunal waived the pre-deposit and stayed the recovery during the appeal.