2013 (10) TMI 1113

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..... common order and therefore both are taken up together for disposal. Applicant filed these applications for early hearing of the appeals. As the stay petitions are taken up for hearing, these applications are disposed of as infructuous. 2. Applicant is a non-banking financial company. There is a total demand of service tax of Rs.4,54,51,620/- along with interest and penalties for the period July .....

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..... hat Tribunal in the case of Housing & Dev. Corporation Ltd. (HUDCO) Vs CST Ahmedabad 2012 (26) STR 531 (Tri.-Ahmd.) decided the appeal and held that service tax would be leviable on pre-payment of loan or foreclosure charges. He further submits that this Bench in the case of Indusind bank Ltd. Vs CST Chennai 2010 (17) STR 565 (Tri.-Chennai) directed pre-deposit of 50% of tax. 6. After considering .....

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..... nt at that time will not change the head of income from service charges to interest.    18.4 Interest is nothing but the time-compensation for somebody's money being retained by somebody else. The longer the period of retention, the higher will be the interest amount. In this background, the prepayment charges can never be considered to be in the nature of interest as prepayment only me .....

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