2007 (3) TMI 129 - AT - Service Tax

Stay/dispensation of pre-deposit - Appellant contended that they have already paid service tax on free service and therefore can t be taxed again - Held that appellant contention is correct and pre-deposit waived and recovery amounts stayed

Summary

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the appellant regarding service tax on free service provided to automobiles. The appellant argued that the free service is part of after-sale service and is included in the sale price of the vehicle, so it should not be taxed separately. The stay application was allowed, and pre-deposit requirement was waived until the appeal's disposal.