2008 (5) TMI 69 - AT - Service Tax

Demand of 3 crores & equal amount of penalty - held under the impugned order that Assam State Transport Co. (ASTC) is rendering business auxiliary services to private bus owners by way of allowing such bus owners to ply passenger buses under the banner of ASTC on bus routes which are not open to the private bus operators - prima facie this activity does not come under the category of business auxiliary services stay is granted

Summary

The Appellate Tribunal CESTAT, Kolkata ruled in favor of Assam State Transport Corporation, stating that their activities do not fall under the category of business auxiliary services. The duty demand and penalty of over Rs. 3.00 crores each were set aside. Pre-deposit requirement was dispensed with pending final hearing of the appeal.