2008 (7) TMI 333 - AT - Service Tax

Contracts with DMRC for supply of equipments as well as design, manufacture, supply, installation, testing and commissioning of Electrical, Hydraulic and Fire Systems - Revenue considered such supplies to fall within the ambit of Erection, Commissioning or Installation Service - assessee has already obtained Stay Order in respect of the same issue - to follow the ratio of the earlier order, stay is granted

Summary

Issues:
1. Waiver of pre-deposit in service tax matter.
2. Consideration of similar rulings for granting waiver.
3. Stay order and linkage of appeals for hearing.

Analysis:
1. The appellant, engaged in "Erection, Commissioning or Installation" activities, was required to pre-deposit a significant amount under the service tax provisions. They had contracts with a specific corporation for supplying electrical goods and services falling under the service tax ambit. The appellant sought a waiver of pre-deposit based on previous rulings and the similarity of the issue with their earlier case.

2. The appellant's counsel argued for waiver by citing a previous stay order granted in a similar matter by the Tribunal, referencing specific cases like L&T Ltd. v. CCE, Vadodara-II. The Special Counsel for the respondent requested time to prepare for the appeals but distinguished the previous stay order. The Tribunal noted the appellant's previous stay order and the consistency of rulings, deciding to grant the waiver of pre-deposit and stay the recovery until the appeal's disposal. The Tribunal linked these appeals with others for a consolidated hearing, scheduled for a specific date.

3. The Tribunal, after careful consideration, allowed the stay application, following the precedent set by earlier orders and granting the waiver of pre-deposit. The recovery was stayed until the appeal's final decision, with a specific provision that no recovery would occur even after 180 days from the stay order. The appeals were linked with other related cases for a consolidated hearing, scheduled for a particular date to manage the proceedings efficiently.