2011 (9) TMI 508 - AT - Service Tax

Appeal dismissed for non-compliance of pre-deposit - Assessee engaged in construction services - Held - In view of CIT vs. Sindi Krishi Utpanna Bazar samitee, case remanded back with waiver of pre-deposit.

Summary

Issues:
1. Dismissal of appeal for non-compliance of pre-deposit order.
2. Whether construction for Agricultural Produce Market Committee (APMC) is commercial in nature.
3. Grant of waiver of pre-deposit and remand to lower appellate authority.

Issue 1: Dismissal of appeal for non-compliance of pre-deposit order
The appellant appealed against an order requiring a pre-deposit of service tax. The appellant argued that the construction for APMC should not be taxed as it is for charitable purposes. The Hon'ble High Court's decision and a Board's Circular were cited to support this argument. The appellant requested a waiver of pre-deposit and a reconsideration by the lower appellate authority.

Issue 2: Whether construction for Agricultural Produce Market Committee (APMC) is commercial in nature
The Authorized Representative (JDR) for the respondent argued that the construction by the appellant for APMC should be considered commercial as APMC charges commission. The Tribunal noted that the lower appellate authority did not provide a view on this issue. The Tribunal decided to remand the matter back to the lower appellate authority for further examination due to the narrow compass of the issue.

Issue 3: Grant of waiver of pre-deposit and remand to lower appellate authority
After considering both sides' submissions, the Tribunal found the issue to be debatable, especially in light of the High Court's decision. Consequently, the Tribunal granted a waiver of pre-deposit and remanded the matter to the lower appellate authority for a decision on merit without insisting on pre-deposit. The appeal and stay application were disposed of accordingly.