2013 (11) TMI 456 - AT - Service Tax

Waiver of pre deposit - Construction services - Works contract services - Held that - Since the issue needs deeper consideration, we find the amount deposited by the appellant during the proceedings can be considered as enough deposit to hear and dispose the appeal. Accordingly, the application for waiver of pre-deposit of balance amounts involved is allowed and recovery thereof stayed till the disposal of appeal - stay granted.

Summary

Issues Involved:
Taxability of services rendered by the appellant to specific companies for preparing the site for building purposes.
Consideration of the amount deposited by the appellant during the proceedings for waiver of pre-deposit of balance amounts involved.

Analysis:

Issue 1: Taxability of Services Rendered
The judgment pertains to a Stay Petition where the appellant contested the demand of Service Tax under Construction services and Works Contract services for the period 2005-2006 to 2009-2010. The appellant claimed to have a strong case on merit and had already deposited a significant amount towards the demand, interest, and penalty during the lower authorities' proceedings. The Departmental Representative confirmed the appellant's deposits. The Tribunal acknowledged the issue of taxability concerning services provided to specific companies for preparing building sites, including M/s ONGC, M/s Essar Oil, M/s Oilex Ltd, and M/s Niko Resources Ltd. The Tribunal recognized the need for deeper consideration of this issue, indicating its complexity and significance in the case.

Issue 2: Consideration of Deposited Amount for Waiver
Upon careful consideration of submissions from both parties, the Tribunal deemed the amount deposited by the appellant during the proceedings as substantial. Consequently, the Tribunal allowed the application for waiver of pre-deposit of the remaining balance amounts involved. The Tribunal decided to stay the recovery of the outstanding balance until the appeal's final disposal, recognizing the deposited amount as sufficient for hearing and deciding the appeal effectively. This decision reflects the Tribunal's discretion in balancing the interests of the appellant and the tax authorities pending the resolution of the taxability issue.

In conclusion, the judgment by the Appellate Tribunal CESTAT AHMEDABAD addressed the taxability of services provided by the appellant and the consideration of the deposited amount for waiver of pre-deposit. The decision highlighted the need for deeper consideration of the taxability issue and granted relief to the appellant by allowing the waiver application and staying the recovery of the remaining balance.