Judgment: 1. The appellants pray for waiver of pre-deposit duty amount of Rs. 41,680/- and penalty amount of Rs. 42,132/-. The appellant is a Division of Kerala State Electricity Board, a statutory body constituted under the law. They were engaged in testing the electrical meters installed at the premises of the consumers, for which they were collecting fee in the name of "Testing and Certification Charges". The Revenue has proceeded to levy Service Tax. The appellant's contention is that they are exempted from duty in the light of the Board's Circular No. 89/7/2006 ST dated 18.12.2006 which clearly specifies that where statutory fees are collected by statutory bodies, then Service Tax is not leviable. He submits that authorities have not considered this circular.
3. We have perused the circular. Prima facie, the circular covers the issue, hence the stay application is allowed granting waiver of penalty amount and staying its recovery. The Service Tax has already been deposited in this case. There shall be no recovery of penalty till the appeal is disposed of. Appeal to come up in its turn.