Service Tax - Air India gets waiver of pre-deposit of Rs 8 Cr from HC
The Commissioner had confirmed a demand of over Rs. 65 Crores in respect of alleged repair and maintenance service to the extent of Rs. 49.95 crores and in respect of alleged business auxiliary service to the extent of Rs. 15.53 crores. The CESTAT directed a pre-deposit of Rs. 8 Crores, even which was a financial hardship for the airline. In view of the fact that the financial hardship of the appellant has already been recognised by the Tribunal in some other cases, the High Court ordered waiver of pre-deposit and directed the Tribunal to hear the appeal without any pre-deposit and also cautioned the Department not to press for recovery of the tax, penalty and interest amount till the disposal of the appeal by the Tribunal.