2013 (10) TMI 1209 - AT - Service Tax

Demand - Incentives amount received from ICICI bank for utilizing their premises for lending activities - Held that - demand for extended period could not have been invoked in this case on prima facie basis. However, in view of the fact that for the demand invoking larger period, the appellant has been required to deposit 25% of the demand, we consider it fair that the appellant should deposit service tax within the normal period with interest. Subject to fulfillment of this requirement within six weeks and report compliance on 22/08/2013, the requirement of predeposit of the balance adjudged dues is waived and stay against recovery is granted during the pendency of appeal - Decided against assessee.

Summary

The judgment by Appellate Tribunal CESTAT Bangalore involved a case where an authorized service station for selling Hyundai cars received incentive amounts from ICICI bank for lending activities. The Tribunal found that the demand for extended period could not be invoked, but required the appellant to deposit service tax within the normal period with interest. The appellant was granted a stay against recovery during the appeal process upon fulfilling this requirement.