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2014 (2) TMI 528 - AT - Service TaxClassification of service - incentives received for achieving targets of sales of cars - Whether its activities fall within the definition of Business Auxiliary Service - Held that - it appropriate to grant stay of further proceedings pursuant to the impugned order, on condition that the appellant shall deposit 50% of the tax component as assessed, while granting stay of the balance of the duty component and whole of the penalty component. - stay granted partly.
Issues:
Interpretation of activities falling under Business Auxiliary Service for service tax liability. Analysis: The appellant, an authorized dealer of a car manufacturer, remitted service tax along with a penalty. The appellant argued that the Commissioner erred in categorizing the transaction as Business Auxiliary Service, thereby making it liable for service tax. The key contention revolved around whether the appellant's activities truly fell within the definition of Business Auxiliary Service. The Tribunal acknowledged that the appellant had a plausible case regarding this issue. Considering the prima facie case and balance of convenience, the Tribunal decided to grant a stay on further proceedings based on certain conditions. The appellant was directed to deposit 50% of the assessed tax amount while the remaining duty component and penalty were stayed. The appellant was given six weeks to make the required deposit. Failure to comply within the stipulated time would result in the automatic dissolution of the stay, allowing the Revenue to take necessary steps for recovering the entire amount of duty, interest, and penalty as specified in the original order. In conclusion, the Tribunal disposed of the stay application in accordance with the conditions outlined, providing a temporary reprieve to the appellant while ensuring the Revenue's rights for recovery in case of default.
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