2008 (9) TMI 125 - AT - Service Tax

Business auxiliary services rendered by an authorized dealer of two wheelers non payment of tax appellant contend that they were not aware that the amount received from financial institutions for facilitating the sanction of loan in their premises is subject to service tax - In view of the fact that service tax has not been disputed and paid and agreeing that there was some confusion about the issue. I find this a fit case for allowing the benefit of Section 80 penalties are set aside

Summary

The Appellate Tribunal CESTAT Ahmedabad ruled in Appeal No. ST/46/2008 that the appellant, a dealer of TVS brand motorcycles and scooters, was liable to pay Service Tax of Rs. 50,744 for business auxiliary services provided from July 2003 to February 2006. The appellant paid the tax with interest without waiting for a show cause notice. The tribunal acknowledged the confusion regarding the taxability of amounts received from financial institutions and granted the appellant the benefit of Section 80 of the Finance Act 1994, setting aside imposed penalties. Interest payment by the appellant was deemed necessary if not already made.