2012 (5) TMI 376 - AT - Service Tax

Application for waiver of pre-deposit - demand of interest is on the ground that the assessees delayed in paying the service tax on transactions between associated enterprises - contention of the assessees is that there has been no delay on their part as the amendment to Section 67 by which service tax liability was to be discharged in the case of transactions with associated enterprises immediately on entry in the books of accounts is only prospective i.e. w.e.f. 10-5-2008, which is that date of amendment to the statutory provision and not retrospectives - prayer for waiver of pre-deposit granted

Summary

The Appellate Tribunal CESTAT, Chennai heard an application for waiver of pre-deposit of interest and penalty related to service tax on transactions between associated enterprises. The assessees argued that there was no delay in payment as the relevant amendment was prospective from May 10, 2008. The Tribunal found merit in this argument based on a previous order and granted the waiver, staying the recovery of the disputed amounts pending appeal.