ORDER
S.S. Kang, Vice-President
1. Heard both sides.
2. The applicant filed this application for waiver of pre-deposit of penalty. The amount of Service Tax has already been deposited by the applicant. In this case the benefit of Service Tax credit has been denied on the ground that input service and output services do not fall under the same category.
3. The contention of the applicant is that the applicant had taken on lease the telephone lines of BSNL, which is a registered assessee under Service Tax under the category of telephone services. The applicant is regularly paying Service Tax on the lease lines and BSNL is continuously charging it from the applicant in respect of the telephone services provided by them and the applicants are also providing telephone services, therefore, input and output services fall under the same category. Keeping in view the facts and circumstances of the case as the amount of Service Tax has already been deposited, the pre-deposit of whole of the penalty is waived for hearing of the appeal. The stay petition is allowed.
(Dictated and pronounced in open court on 1-8-2005)