9911796707
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Issues:
1. Applicability of exemption notification for services provided by the appellants under 'Business Auxiliary Services' category. 2. Requirement of pre-deposit and penalty imposition on the appellants. Analysis: 1. The judgment revolves around the applicability of an exemption notification concerning services provided by the appellants related to marketing/selling of loans and allied services. The appellants were not registered under the 'Business Auxiliary Services' category, leading to their inclusion in the tax net. The counsel argued that an exemption notification issued by the Ministry was applicable to their services, exempting services incidental or auxiliary to specified activities. The Commissioner's denial of the exemption lacked substantial reasoning, merely stating the notification's inapplicability. The Tribunal, led by Member (J), acknowledged the prima facie applicability of the notification, granting a waiver of pre-deposit and staying recovery pending appeal disposal. 2. The issue of pre-deposit and penalty imposition on the appellants was also addressed in the judgment. The appellants were required to pre-deposit a specific amount along with a penalty. However, considering the potential applicability of the exemption notification and the lack of substantial reasoning for denial, the Tribunal allowed the stay application. Consequently, the waiver of pre-deposit was granted, and recovery was stayed until the appeal's final disposal. The JDR was directed to gather reports on the appellants' submissions for further consideration during the appeal proceedings, emphasizing the need for a comprehensive review before the appeal hearing. This detailed analysis of the judgment highlights the core issues of exemption notification applicability and the related pre-deposit and penalty imposition, providing a comprehensive overview of the Tribunal's decision and the legal arguments presented by the parties involved.
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