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of <h1>Tribunal Orders Pre-Deposit to Stay Service Tax Demand</h1> The Tribunal found confusion regarding the levy and applicability of Service Tax on the construction of a commercial complex on leased land. It ordered ... - Issues:1. Nature of levy and applicability of Service Tax on construction of commercial complex on leased land.2. Requirement of pre-deposit by the Appellant to protect the interest of Revenue as an interim measure.Analysis:1. The case involves a dispute regarding the applicability of Service Tax on the construction of a commercial complex by the Appellant on land leased from Jaipur Development Authority. The Appellant argues that since the lease is not registered under the Indian Registration Act and there is no finalized contract with prospective buyers, the levy made by the Revenue is premature. The Appellant contends that without a finalized agreement, the imposition of Service Tax is not justified. On the other hand, the Department argues that when the Appellant constructs a commercial complex on the leased land and sells it to prospective buyers, Service Tax is appropriately levied. The Department asserts that the Appellant's arrangement with prospective buyers falls under the purview of the law, as the Appellant cannot sell the leased property without permission from the Jaipur Development Authority.2. After hearing both sides and examining the records, the Tribunal finds that there is confusion regarding the nature of the levy and the applicability of Service Tax in the present case. The Tribunal acknowledges that both parties have valid arguments and decides that a pre-deposit of Rs. 5 lakhs is necessary to protect the interest of Revenue as an interim measure. The Tribunal directs the Appellant to make the pre-deposit within four weeks to safeguard the Revenue's interests. Compliance is required by a specified date to ensure the protection of Revenue's interests as an interim measure. If the pre-deposit is made as directed, the realization of the balance demand will be stayed until the appeal is disposed of, providing relief to the Appellant during the ongoing legal proceedings.
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