got one!!
servage.net
swiss based company
750gb hdd 7.5tb bandwidth £4.50 a month <3 it, gonna get that...
if anyone looking for similar thing, go for it
@Siruthuli by your username and sites i am guessing that you want to start bollywood songs site.
Indian music companies are not so hard to tackle because they have no unity like US (RIAA & MPAA) in fighting, all work alone. start with any us based host (for hosting mp3) and one with spain or netherland (for linking) and when you receive too many notices just go with new host and transfer your files by ssh.
Always use 2 domains one for site and other for mp3 files. (Songs.pk is good example of it)
Now one more way is contact mime360.com and sign a deal with them and you can make legal music streaming site and can earn money from it with peace in mind and without worrying about legal notices