2014 (7) TMI 198 - AT - Service Tax

Waiver of pre deposit - Demand of service tax - Sec. 65(105) - Construction activity - Held that - Revenue is demanding service tax in view of the explanation to Sec. 65(105) dated 1.7.2010. before this section came into force, almost 75% of the construction was complete as per the books of accounts - liability as per the explanation is approximately ₹ 29 lakhs and the applicants had already paid more than ₹ 29 lakhs. Hence pre-deposit of the remaining dues is waived and recovery thereof is stayed during the pendency of the appeal. - Stay granted.

Summary

The applicants filed for waiver of pre-deposit of penalty for service tax in a construction activity case. They had paid a significant amount already. The Revenue's demand was based on an explanation to Sec. 65(105) from 1.7.2010. The Tribunal found merit in the applicant's contention that the explanation is prospective, so pre-deposit of remaining dues was waived and recovery stayed during the appeal. Stay petition was allowed.