2008 (2) TMI 300 - AT - Service Tax

Contention of the revenue is that applicants are advising their clients to run their organization in systemic manner so tax is payable under category of Management Consultant - contention of the appellant is that they only a private limited company set up by State of Punjab to identify the resources and investment, etc. in view of terms and conditions of the agreement, applicants had a strong case - Stay petition is allowed

Summary

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the applicant for waiver of pre-deposit of service tax amount. The applicant had already deposited Rs. 1,25,000 out of Rs. 2,78,350 demand. The Tribunal found that the applicant had a strong case as they were not providing services as a management consultant. The remaining amount of service tax and penalties were waived, and the stay petition was allowed.