2014 (11) TMI 35 - AT - Service Tax

Waiver of pre deposit - Club Association Service - Held that - prima facie, the demand of service tax on penal interest is not sustainable. Having regard to the total amount payable on other aspects, we consider that the amount deposited by the appellant is sufficient for the purpose of hearing the appeal. Accordingly, the requirement of pre-deposit of the balance dues is waived and stay against recovery is granted during pendency of the appeal - Stay granted.

Summary

The Appellate Tribunal CESTAT Bangalore waived the requirement of pre-deposit for an appellant who had deposited Rs. 1,00,000 out of the demanded service tax of Rs. 3,63,396. The tribunal found the demand of service tax on penal interest collected by the appellant not sustainable. Stay against recovery was granted during the appeal's pendency.