S.S. Kang, Vice-President
1. Heard both sides.
The applicants filed this application for waiver of pre-deposit of an amount of Rs. 61,473/-. The demand is confirmed after denying the credit in respect of service tax on Port & Space charges. The Revenue is of the opinion that BSNL is not required to pay service tax in respect of Port & space charges paid by them. The applicants availed the credit of the service tax paid by BSNL as the BSNL provided taxable service to the applicants.
2. The contention of the applicants is that as the service tax paid by BSNL is accepted by the Revenue, and there is no challenge to the payment of service tax, the credit cannot be denied.
Prima facie BSNL has paid service tax which were accepted by the Revenue, therefore, applicants have a strong case in their favour. Therefore, pre-deposit of duty and penalty is waived. Stay petition is allowed.
(Dictated & pronounced in the Open Court.)