Pre-deposit waiver in service tax dispute turned on mixed labour-and-material contract, limitation plea, and Notification No. 12/2003-S.T. scrutiny.

Prima facie complete waiver of pre-deposit was not made out in a service tax dispute arising from relocation work involving supply of labour and materials. The claimed benefit of Notification No. 12/2003-S.T. required detailed examination at final hearing, and the limitation plea could not be conclusively decided at the stay stage. As the record did not justify full waiver, partial pre-deposit was directed, with the balance waived and recovery stayed on compliance.

---

---

Issues: Whether the appellant had made out a prima facie case for complete waiver of pre-deposit in a service tax demand arising from supply of labour and materials for relocation of a ball mill, including the plea of limitation and entitlement to the benefit of Notification No. 12/2003-S.T. dated 20.06.2003.

Analysis: The appellant's contract involved supply of labour as well as materials such as pipes and fittings used in the course of relocation work. In that context, the benefit of Notification No. 12/2003-S.T. dated 20.06.2003 required detailed examination at the stage of final hearing. Since limitation was also raised, the matter could not be finally decided at the stay stage. The record did not establish a case for complete waiver of the amounts ordered by the lower authorities.

Conclusion: Complete waiver of pre-deposit was declined. The appellant was directed to deposit Rs. 2,00,000 within the stipulated time, and on compliance the balance pre-deposit was waived and recovery stayed till disposal of the appeal.

---