2009 (2) TMI 177 - AT - Service Tax

Credit Card Debit Card Charge Card and Other Payment Card Service - Banking & Financial Services - As recipient of the said service they are liable to discharge the service tax liability. Since the said service was introduced only with effect from 1-5-2006 the contention of the appellant is that they would not be liable to tax prior to 1-5-2006 - according to the Department the said service would appropriately be classified under the category of Banking & Financial Services prior to 1-5-2006 held that - appellant has strong case on merits pre deposit waived completely.

Summary

The Appellate Tribunal CESTAT, Bangalore, in the case of 2009 (2) TMI 177, heard an appeal where the appellant was required to pre-deposit certain amounts including service tax, interest, and penalties. The appellant contended that the service in question, related to credit card, debit card, charge card, and other payment card services, was taxable only from 1-5-2006 onwards. The Tribunal noted that a similar issue had been addressed in bensh stay order No. 973/2008, where a stay was granted. The Tribunal, inclined to follow its previous decision, ordered a complete waiver of the pre-deposit amount until the appeal was disposed of, with no recovery even after 180 days from the order date. The appeal was scheduled for a hearing in due course. The judgement was pronounced and dictated in open court by S/Sh. T.K. Jayaraman and M.V. Ravindran. The Appellant was represented by Shri Ananthan, C.A., and the Respondent by Ms. Sudha Koka, SDR.