2009 (2) TMI 364 - AT - Service Tax

Pre deposit of service tax an penalty- The applicant is engaged in the profession of installation/fitting of CNG/LPG kits in the motor vehicles and is charging Rs. 500 per installation. The service tax stands confirmed against him by including the value of the kits, which has been bought by him from the market. He submits that the service tax can be confirmed in respect of the service charges received by him from his clients, which would be to the tune of Rs. 30,860, which already stands deposited by him. Held that- As the appellant has already deposited an amount of Rs. 30,860 and the issue is of contentious nature, we direct the Commissioner (Appeals) to decide the appeal on merits without insisting on any pre-deposit. We set aside the impugned order and remand the matter to Commissioner (Appeals) for decision on merits. Stay petition also gets disposed of.

Summary

The Appellate Tribunal CESTAT, Ahmedabad allowed the appeal without requiring pre-deposit of duty and penalty. The appellant, engaged in installation of CNG/LPG kits, argued that service tax should only apply to service charges, not kit value. The Tribunal directed the Commissioner (Appeals) to decide the appeal on merits without pre-deposit.