South East Corporation Sai Trade Vs. the Commissioner of Central - Court Judgment

Excerpt:
1. the appellant is required to pre-deposit service tax amount of rs. 18,446/- and penalty of rs. 500/- each under sections 76 & 77 of the act. the demands have been raised for the period from july 2003 to september 2004. the learned counsel submits that the appellant was promoting sales of simcards of bsnl and there is no liability to discharge the service tax. he submits that the service rendered by the appellant is just an extended activity of "post-paid cellular service" and not a business auxiliary service. he also submits that the demand is barred by time.2. heard both the sides in the matter. as the amount involved in the matter is small, the appeal is to be heard by the single member bench.the stay application is allowed by granting waiver of pre-deposit of the amounts and staying its recovery till the disposal of the appeal.the matter to come up for final hearing before the single member bench on 23^rd march 2007.

Judgment:
1. The appellant is required to pre-deposit service tax amount of Rs. 18,446/- and penalty of Rs. 500/- each under Sections 76 & 77 of the Act. The demands have been raised for the period from July 2003 to September 2004. The learned Counsel submits that the appellant was promoting sales of simcards of BSNL and there is no liability to discharge the service tax. He submits that the service rendered by the appellant is just an extended activity of "post-paid cellular service" and not a Business Auxiliary Service. He also submits that the demand is barred by time.

2. Heard both the sides in the matter. As the amount involved in the matter is small, the appeal is to be heard by the Single Member Bench.

The stay application is allowed by granting waiver of pre-deposit of the amounts and staying its recovery till the disposal of the appeal.

The matter to come up for final hearing before the Single Member Bench on 23^rd March 2007.