RUBICON FORMULATIONS PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule returnable forthwith. Heard finally by consent of parties.

(2.) We find that even the Tribunal while rejecting the claim of dispensing with the entire amount of pre-deposit, has found that for the purpose of levying service tax, cost of raw materials, packing materials, overheads and profit of the company, should not have been taken into consideration. Prima facie it appears that in view of the judgment of the Supreme Court in the case of "Bharat Sanchar Nigam Ltd. v. Union of India,2006 2 STR(SC) 161", the petitioner may not be liable to pay service tax.

(3.) The learned Counsel appearing for petitioner has agreed to give bank guarantee of the amount of Rs. 25 lakhs.