2008 (8) TMI 242 - AT - Service Tax

Application for stay of the operation of the impugned order whereby the Commissioner (Appeals) held that respondents are not liable to pay Service tax on the amount of interest received - Commissioner (Appeals) held that respondents are liable to pay service tax on the amount received in respect of service provided and not on the interest amount received - no ground to stay the operation of the impugned order - stay petition by revenue is dismissed.

Summary

The Appellate Tribunal CESTAT NEW DELHI dismissed the stay petition filed by the Revenue regarding the liability of the respondents to pay service tax on interest received. The Commissioner (Appeals) held that service tax is applicable on the amount received for services provided, not on the interest amount. The appeal to add interest to the assessable value was rejected.