2008 (12) TMI 52 - AT - Service Tax

Credit was denied on payment of tax to the overseas commission agent - held that the payment to the overseas commission agent is not an input service. Prima facie, we find that the applicant made out a case for waiver of tax and penalty. Accordingly, tax and penalty is waived. Stay application is allowed.

Summary

The Appellate Tribunal CESTAT, New Delhi granted waiver of tax of Rs. 1,45,506/- and penalty of Rs. 10,000/- to the applicant. The tribunal found that the payment to the overseas commission agent was not an input service, leading to the waiver of tax and penalty. Stay application was allowed.