2008 (8) TMI 210 - AT - Service Tax

Rent received from financial institutions for accommodating them in their premises to hold loan mela - bona fide belief that the issue of payment of service tax fall under the category of business auxiliary service which was clarified by Board vide Circular No. 87/05/2006 appellant paid entire amount of service tax and seeks grant of stay of penalty stay is granted

Summary

The Appellate Tribunal CESTAT, Ahmedabad granted stay of penalty amount to the appellant as they had paid the entire service tax amount. The issue was related to business auxiliary service for accommodating financial institutions in premises for loan mela, clarified by Board Circular No. 87/05/2006. Pre-deposit of penalty condition was dispensed with, and the appeal was fixed for final disposal on 26-9-08.