2008 (9) TMI 256 - AT - Service Tax

Demand raised on presumption of collection - Tax amount has been calculated based on a presumption regarding the amount the appellant may have received - It is the case of the appellant that during that period the vehicle in question was under repair - Since no tax can be levied on the basis of a mere presumption, the requirement of pre-deposit is waived, the impugned order is set aside and the appeal is allowed.

Summary

The appellate tribunal in Kolkata ruled in favor of the appellant as tax was calculated based on a presumption. The appellant claimed the vehicle was under repair during the period in question. The requirement of pre-deposit was waived, the impugned order was set aside, and the appeal was allowed.