Industrial construction service dispute: appeal restored after COD clearance, but only partial pre-deposit waiver granted.

Production of COD clearance led to recall of the earlier dismissal and restoration of the appeal to its original number. On the pre-deposit application in a dispute over construction of a chimney in a power plant, the Tribunal held prima facie that the activity fell within industrial construction service for the relevant period and that no case for total waiver of pre-deposit was made out. Financial hardship was considered in fixing the deposit, resulting in only partial waiver and a direction to deposit Rs. 20,00,000 within eight weeks, with the balance waived on compliance.

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Issues: Whether the appeal deserved restoration after production of COD clearance, and whether complete waiver of pre-deposit of service tax and penalties was justified in a dispute concerning industrial construction service.

Analysis: The earlier dismissal for want of COD clearance was recalled on production of the necessary clearance, and the appeal was restored to its original number. On the pre-deposit application, the applicants had constructed a chimney in a power plant during the relevant period and claimed that the activity was in the nature of works contract and that the demand was time-barred. The Tribunal found, prima facie, that the construction activity fell within industrial construction service for the relevant period and that no case for total waiver was made out. However, financial hardship was taken into account while considering the extent of deposit.

Conclusion: The appeal was restored, but only partial waiver of pre-deposit was granted; the applicants were directed to deposit Rs. 20,00,000 within eight weeks, and the balance pre-deposit stood waived on compliance.

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