2008 (1) TMI 221 - AT - Service Tax

Services of life insurance - auxiliary insurance service - point of dispute is with regard to whether certain payments which represent allowable reimbursement paid to the agents in the form of club expenditure, are includible in taxable value or not - CBEC in their letter dated 9-2-04 has given deduction of certain expenses like travelling allowance etc. for service tax purposes - Prima facie, we find that the appellants case is backed by Board s clarification stay granted

Summary

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the appellants in a service tax case related to life insurance services. The appellants were not required to pre-deposit the service tax and penalties due to clarification from the CBEC regarding allowable reimbursements to agents. The pre-deposit of duties and penalties was completely waived until the appeals were disposed of.