2018 (4) TMI 1592 - AT - Service Tax

Taxability - pre-payment charges - difference of opinion - Held that - The matter has reached before the jurisdictional High Court at Ahmedabad in Housing and Urban Development Corporation Ltd. Vs Commisioner 2012 (7) TMI 1072 - GUJARAT HIGH COURT - both parties have also agreed that without the final verdict of the jurisdictional High Court the present reference cannot be decided. Liberty granted to the assessee-Appellants to come again after having the final verdict from the jurisdictional High Court but within the prescribed time.

Summary

The Appellate Tribunal CESTAT Ahmedabad addressed the taxability of pre-payment charges by finance providers. A conflicting view existed between Delhi and Ahmedabad benches, leading to a referral to the Larger Bench. The matter was agreed to be pending until the jurisdictional High Court in Ahmedabad provided a final verdict. The assessee-Appellants were granted liberty to return after the High Court's decision, within the specified time if necessary.