2015 (2) TMI 929 - AT - Service Tax

Waiver of pre deposit - construction of residential complex service - Held that - Applicant was engaged in construction of residential complex for the Tamil Nadu Police Housing Corporation Ltd. under the Govt of Tamil Nadu - following the Tribunal's earlier decision (2013 (8) TMI 262 - CESTAT CHENNAI), we waive predeposit of tax along with interest and penalty till disposal of the appeal - Stay granted.

Summary

Issues: Application for waiver of predeposit of tax in the construction of residential complex service

In this judgment by the Appellate Tribunal CESTAT CHENNAI, the applicant sought a waiver of predeposit of tax amounting to Rs. 72,36,747, along with interest and penalty, related to the construction of a residential complex for the Tamil Nadu Police Housing Corporation Ltd. under the Government of Tamil Nadu. The applicant's advocate referenced previous orders where the Tribunal had granted stays in similar cases. The Revenue's representative highlighted the involvement of three parties: the appellant as the contractor, the Tamil Nadu Police Housing Corporation, and the State Government. The Revenue relied on a previous Tribunal decision involving the construction of houses for fishermen affected by a tsunami, which was deemed not directly applicable to the current case. Considering the precedent set by the Tribunal in earlier cases, the predeposit of tax, interest, and penalty was waived until the appeal's disposal, with instructions to link this appeal with related ones.

This judgment addresses the issue of waiver of predeposit of tax in a construction project involving a residential complex service. The Tribunal considered the applicant's involvement in constructing a residential complex for a government entity and noted the past instances where stays were granted in similar cases. The advocate for the applicant presented these precedents to support the request for waiver. On the other hand, the Revenue emphasized the roles of the contractor, the Tamil Nadu Police Housing Corporation, and the State Government in the project. The Revenue cited a previous case involving construction for tsunami-affected individuals, which was distinguished from the current scenario. Ultimately, the Tribunal decided to waive the predeposit of tax, interest, and penalty until the appeal's finalization, aligning with its previous rulings in comparable matters.

The judgment also delves into the application of legal principles regarding the waiver of predeposit of tax in the context of construction services. By examining the specifics of the construction project for the Tamil Nadu Police Housing Corporation, the Tribunal assessed the applicant's claim for relief. The applicant's reliance on past Tribunal orders where stays were granted in analogous cases demonstrated a consistent approach by the Tribunal in such matters. Conversely, the Revenue's reference to a prior case involving construction for a specific cause underscored the need to distinguish between different factual scenarios. The Tribunal's decision to grant the waiver until the appeal's resolution was grounded in the application of legal principles and precedents to the current circumstances, ensuring a fair and reasoned outcome.