2008 (9) TMI 202 - AT - Service Tax

Suppression import of services prior to decision of tribunal in the case of Hindustan Zinc Ltd., there were divergent views whether recipient of taxable service provided by a non-resident or from outside India is liable to pay Service tax w.e.f. 1-1-2005 OR w.e.f. 18-4-2006 when the provisions of Finance Act was specifically amended - prima facie, there is merit in the contention of the applicant that no suppression can be alleged against them stay granted

Summary

The Appellate Tribunal CESTAT, New Delhi granted waiver of pre-deposit of Service tax and penalties to the applicant. The demand was based on suppression, but a recent decision clarified the tax liability of recipients of services from non-residents. The Tribunal found merit in the applicant's contention and waived the pre-deposit. Stay petition was allowed.