2008 (10) TMI 45 - HC - Service Tax

Tribunal while rejecting the claim of dispensing with the entire amount of pre-deposit, has found that for the purpose of levying service tax, cost of raw materials, packing materials, overheads and profit of the company, should not have been taken into consideration petitioner may not be liable to pay service tax - since petitioner has agreed to give bank guarantee of the amount of Rs.50 lacs, tribunal is directed to dispose the appeal on submission of bank guarantee of 50 lacs

Summary

The High Court Bombay modified an order requiring a petitioner to submit a bank guarantee of Rs.50 lakhs to appeal a service tax liability decision, based on a Supreme Court judgment indicating the petitioner may not be liable for the tax. The Tribunal must hear and dispose of the appeal within six months of the order.