Bajaj Allianz General Insurance Vs. Commissioner of Central Excise - Court Judgment

SooperKanoon Citationsooperkanoon.com/44959
CourtCustoms Excise and Service Tax Appellate Tribunal CESTAT Mumbai
Decided OnFeb-26-2007
JudgeJ Balasundaram, Vice, A T K.K.
Reported in(2007)9STJ217CESTAT(Mum.)bai
AppellantBajaj Allianz General Insurance
RespondentCommissioner of Central Excise
Excerpt:
1. we have heard both sides on the application for waiver of pre-deposit of service tax of rs. 5,35,94,363/- and penalty of rs. 100/- per day imposed under section 76 of chapter v of the finance act.the demand has been confirmed against the applicants herein, who are inter alia engaged in providing general insurance service, in respect of the policies issued prior to 10/09/2004, on which date the rate of service tax which was 8% has since been enhanced to 10%, we find that prima facie case for waiver has been made out, as in the case of the same assessee, for a prior period when the service tax was enhanced from 5% to 8% the commissioner (appeals) had taken a view that the amendment would not affect the policies taken prior to that date. thus it shows that the department had taken a.....
Judgment:
1. We have heard both sides on the application for waiver of pre-deposit of service tax of Rs. 5,35,94,363/- and penalty of Rs. 100/- per day imposed under Section 76 of Chapter V of the Finance Act.

The demand has been confirmed against the applicants herein, who are inter alia engaged in providing general insurance service, in respect of the policies issued prior to 10/09/2004, on which date the rate of service tax which was 8% has since been enhanced to 10%, we find that prima facie case for waiver has been made out, as in the case of the same assessee, for a prior period when the service tax was enhanced from 5% to 8% the Commissioner (Appeals) had taken a view that the amendment would not affect the policies taken prior to that date. Thus it shows that the department had taken a stand which it subsequently changed. In such a view of the matter prima facie case for waiver has been made out and we accordingly waive pre-deposit of the service tax and penalty and stay recovery thereof pending the appeal.

2. Since the amount involved exceeds Rs. 5 crores the appeal is fixed for out of turn hearing on 12/04/2007 along with appeal No.ST/295/2006.