2008 (8) TMI 214 - AT - Service Tax

Demand of Rs. 18,56,92,593 is confirmed on the ground that the applicant is providing business auxiliary service as the applicants were processing (process of washing of raw coal with the help of water) goods on behalf of the client - held that this activity is part of mining and cannot be taxed under the business of auxiliary service prior to 1-6-07 - amount of Rs. 9,07,27,417 already deposited is sufficient - Pre-deposit of remaining amount of service tax and penalties are waived

Summary

The applicant filed for waiver of pre-deposit of service tax amounting to Rs. 18,56,92,593. The Tribunal found that the activity in question is part of mining and cannot be taxed under business auxiliary service before 1-6-07. The amount already deposited is deemed sufficient, and the remaining tax and penalties are waived. Stay petition is allowed.