2008 (2) TMI 264 - AT - Service Tax

Confusion of applicability of tax under the category of Business Auxiliary Service this confusion was settled by the Board Circular dated 6-11-2006 - Accordingly, the appellants also deposited the entire amount of tax - appellant has made out a prima facie case for waiver of penalty. Accordingly, pre-deposit of penalty is waived till disposal of the appeal. The application for waiver of pre-deposit of tax and penalty is allowed

Summary

The applicant filed for waiver of pre-deposit of tax of Rs. 2,16,834/- and penalty. There was confusion about tax applicability under 'Business Auxiliary Service.' Board Circular dated 6-11-2006 clarified the issue. The appellant deposited the tax immediately. Penalty pre-deposit waived till appeal disposal. Application allowed.