2009 (10) TMI 474 - AT - Service Tax

Stay- storage and warehousing service- the applicant is contending that they are renting their godowns. The Renting Service case is under the scope of Service tax with effect from 1-6-07. The present demand is prior to that date. Hence, the demand under the Ware housing Service is not sustainable. Held that- the applicant is only renting the godowns, prima facie, Thus, the applicant had a strong case. Therefore, pre-deposit of the amount of Service tax, interest and penalty is waived and recovery of the same is stayed during pendency of the appeal. The Stay Petition is allowed.

Summary

The applicant filed for waiver of pre-deposit of Service tax. The demand was reduced to Rs. 14.67 lakhs. Applicant renting godowns, not liable for Service tax before 1-6-07. Waiver granted, recovery stayed during appeal.