2008 (12) TMI 347 - AT - Service Tax

Penalty- the appellants submits that they had stopped payment of service tax on a bona fide belief that they were not required to pay service tax since they were engaged in providing coaching in a foreign language and he points out that they had regularly paying service tax up to 30-9-2004 and only thereafter they had stopped the payments. He also submits that they had submitted cancellation application for service tax. Held that- Accordingly treating the amount of service tax and interest paid as sufficient for the purposes of section 35F, the matter is remanded to Commissioner (Appeals) with a direction to decide the appeal on merit without insisting on any further amount as pre-deposit.

Summary

The Appellate Tribunal CESTAT, Ahmedabad allowed the appeal filed by the appellants against the Commissioner (Appeals) order. The appellants had stopped service tax payment on a belief and had submitted a cancellation application. The Tribunal remanded the matter to the Commissioner (Appeals) for deciding the appeal on merit without further pre-deposit.