2008 (2) TMI 244 - AT - Service Tax

Demands - business auxiliary service - Contention of the applicants is that they are only maintaining outlet of the I.B.P. Co. - Contention of the Revenue is that even if outlets are owned by petroleum company applicants are selling petroleum products on behalf of the petroleum company - prima facie, applicants do not have strong case in their favour - not a fit case for total waiver of pre-deposit of duty and penalty

Summary

The Appellate Tribunal CESTAT NEW DELHI heard the case regarding waiver of pre-deposit of service tax amounting to Rs. 82,787/- and Rs. 77,076/- along with penalties. The applicants were providing business auxiliary service to IBP Co., but claimed they were only maintaining outlets owned by the petroleum company. The Revenue contended that the applicants were selling petroleum products on behalf of the petroleum company, thus providing business auxiliary services. The Tribunal found that the applicants did not have a strong case and directed them to deposit Rs. 35,000/- each in addition to the amount already deposited. Failure to comply would result in the dismissal of the appeals without further notice.