CREDENTIALS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) WE have heard both sides on the applications for waiver of pre -deposit of service tax of Rs. 2,20,428/ - confirmed against M/s. Credentials under Section 73(1) and penalty of equivalent amount in terms of Section 78 and penalty of Rs. 100/ - per day under Section 76 of the Finance Act, 1994 (in appeal No. ST/136/08 -Mum), service tax of Rs. 23,66,671/ - confirmed against M/s. Crystal Info Financial Services and penalty of equivalent amount together with penalty of Rs. 100/ - per day (in appeal No. ST/202/08 -Mum) and service tax of Rs. 5,04,845/ - confirmed against M/s. Crysto Info Financial Services and penalty of equivalent amount and penalty of Rs. 100/ - per day (appeal No. ST/203/08 -Mum). The service tax has been demanded from the applicants herein on the ground that their service of verification of information furnished by the prospective customers applying for credit cards, home loans and auto loans, which were outsourced by various banks, fell into the category of business auxiliary services attracting service tax liability to w.e.f. 1 -7 -2003.

(2.) WE find that the applicants have made out a strong prima facie case for total waiver of pre -deposit in the light of the Tribunal's Order in S.R. Kalyanakrishnan v. Commissioner of Central Excise, Cochin : 2008 (9) S.T.R. 255 (Tri. -Bang.) wherein similar services provided by the applicants was held to be classifiable as business support service, which came into taxable net only w.e.f. 1 -5 -2006 only and the period covered in the appeal before us is prior to 1 -5 -2006. We therefore waive pre -deposit of service tax and penalty as set out and stay recovery thereof stayed pending the appeals.