2015 (8) TMI 205 - AT - Service Tax

Waiver of pre deposit - construction of residential quarters to TNSTC, construction of residential quarters to Taminadu Police Housing Corporation, construction of staff quarters for Tuticorin Medical College etc - Held that - Appellants have provided construction of residential complex services and the same was elaborately dealt in the miscellaneous order dated 31.12.2014. The appellant did not provide any break up value of each project. This Bench vide miscellaneous order dated 31.12.2014 has already appreciated the facts and has come to a conclusion that balance of convenience tilting in favour of Revenue and appreciating no undue hardship may be caused directed for predeposit. - Partial stay granted.

Summary

Issues:
1. Challenge against a miscellaneous order directing predeposit.
2. Request for waiver of predeposit due to financial crisis.
3. Lack of project breakdown provided by the appellant.
4. Decision on the predeposit amount and waiver.

Analysis:
1. The appellant challenged a miscellaneous order directing predeposit of &8377; 4 crores, which was passed exparte due to the appellant's absence. The High Court set aside this order and remanded the matter to the Tribunal for hearing the stay application.

2. During subsequent proceedings, the appellant was directed to deposit &8377; 50 lakhs to show bonafide for the stay application. The appellant provided evidence of payment and highlighted their construction services to various government projects. They also mentioned a previous deposit of &8377; 48,60,872 in 2011, seeking a waiver of predeposit due to financial hardship.

3. The Revenue argued that the appellant failed to provide a breakdown of the projects undertaken for government agencies and educational institutions, emphasizing the need for clarity on the projects.

4. After considering the arguments from both sides and reviewing previous orders, the Tribunal noted that the appellant had not provided a detailed breakdown of project values. Despite acknowledging the financial difficulties raised by the appellant, the Tribunal directed a predeposit of &8377; 2,00,00,000, with adjustment for amounts already paid. The Tribunal waived the predeposit of the balance dues upon compliance and stayed recovery during the appeal.

This comprehensive analysis covers the issues raised in the judgment, detailing the arguments presented by both parties and the Tribunal's decision regarding the predeposit and waiver request.