2016 (12) TMI 663 - AT - Service Tax

Waiver of the pre-deposit - Section 35F of the Central Excise Act, 1944 - Held that - The main submission made by the Ld Counsel appearing for appellant, Ms. A.S.K. Swetha is that the activities undertaken by appellant include laying of pipelines for water distribution in respect of M/s A.P. Industrial Infrastructure Corporation Ltd. However, we find that appellant has not made out a convincing case for full waiver of pre-deposit. In view thereof, we direct the appellant to pre-deposit ₹ 10 lakhs within period of 4 weeks and to report compliance within 07-10-2016. - stay granted partly.

Summary

Issues:
1. Application for waiver of pre-deposit under Section 35F of the Central Excise Act, 1944.
2. Challenge against the Tribunal's order for depositing &8377; 20 lakhs.
3. Details of demand under different heads including Works Contract Service and Management, Maintenance or Repair Service.
4. Submission by the appellant's counsel regarding the nature of activities undertaken.
5. Tribunal's decision on the waiver of pre-deposit and the specified amount to be deposited.

Analysis:

1. The appellant filed an application seeking waiver of the pre-deposit under Section 35F of the Central Excise Act, 1944. The Tribunal had earlier directed the appellant to deposit &8377; 20 lakhs as a condition for granting stay of recovery of demand. The appellant challenged this order before the High Court, which disposed of the appeal, allowing the appellant to take steps in accordance with the law. Subsequently, the appellant filed the present application for waiver of pre-deposit.

2. The details of the demand included amounts under "Works Contract Service" and "Management, Maintenance or Repair Service" for specific periods. Additionally, interest under Section 75 of the Finance Act and penalties under Sections 76 and 77 of the Finance Act, 1994 were confirmed against the appellants.

3. The appellant's counsel argued that the activities undertaken by the appellant involved laying pipelines for water distribution for a specific entity. However, the Tribunal found the appellant's case insufficient for a full waiver of pre-deposit. Consequently, the Tribunal directed the appellant to pre-deposit &8377; 10 lakhs within four weeks and report compliance by a specified date. Failure to comply within the given period would lead to the dismissal of the case under Section 35F of the Central Excise Act, 1944 without further notice.

4. The Tribunal's decision highlighted the importance of compliance with the pre-deposit requirement and set a deadline for the appellant to fulfill the specified amount. The case was scheduled for reporting compliance on a specific date, emphasizing the need for timely adherence to the Tribunal's directives to avoid dismissal of the case.

5. In conclusion, the Tribunal's judgment focused on the necessity of pre-deposit in the context of the appellant's case, balancing the requirements of the law with the appellant's submissions. By specifying the amount to be deposited and the compliance deadline, the Tribunal provided a clear framework for the appellant to follow, ensuring adherence to legal procedures and timely actions to prevent dismissal of the case.