Service Tax - Renting of Immovable Property - 50% paid by service recipient as directed by Supreme Court - Balance recovery stayed - CESTAT
AS per the Supreme Court judgement in Retailers Association of India vs UOI - , the Members of the Association were directed to deposit 50% of the arrears towards tax dues in three instalments and provide surety for the balance 50%.
In this case, the Department confirmed the demand on the service provider in spite of the fact that the tenant had already paid the 50% tax and provided surety for 50% as directed by the Supreme Court.
The CESTAT noted that the lessee has followed the Supreme Court judgement and so the assesse has made out a strong case for waiver of pre-deposit. The Tribunal waived pre-deposit and stayed recovery till disposal of the appeal.