Prima facie waiver in service tax dispute over construction activity and exemption claim under notification.

In a service tax dispute on construction-related activity, the Tribunal found a strong prima facie case for complete waiver of pre-deposit and stay of recovery. The appellant's activity was alleged to be completion and finishing work in relation to construction of commercial complexes, while exemption under Notification No. 15/04-S.T. was claimed. Relying on an earlier stay order in a similar matter, the Tribunal noted that comparable activity had been treated as works contract service and that service tax liability had prima facie already been discharged under that category. Interim protection was therefore extended for the pendency of the appeal.

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Issues: Whether the appellant had made out a prima facie case for complete waiver of pre-deposit and stay of recovery in a service tax dispute concerning the classification of construction-related activity and the claimed exemption under Notification No. 15/04-S.T. dated 20-2-2004.

Analysis: The demand was based on the view that the appellant rendered completion and finishing services in relation to construction of commercial complexes and therefore could not claim the benefit of exemption. The Tribunal found that the appellant had shown a strong prima facie case for waiver, following an earlier stay order in a similar matter where comparable activity was treated as works contract service and it was prima facie accepted that service tax liability had already been discharged under that category. On that basis, the Tribunal extended the same interim protection.

Conclusion: Complete waiver of pre-deposit and stay of recovery were granted during the pendency of the appeal.

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