Pre-deposit waiver rejected where pipeline construction within industrial premises fell within taxable construction service ambit.

Pipelines laid within industrial and commercial establishments were treated as falling within the taxable ambit of commercial and industrial construction services, supported by the applicable classification and the Board circular. As the appellant failed to show a strong prima facie case and did not plead financial hardship, unconditional waiver of pre-deposit was not justified. The request for waiver of pre-deposit of service tax, interest and equal penalty was rejected, and deposit was directed as a condition for hearing the appeal.

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Issues: Whether unconditional waiver of pre-deposit of service tax, interest and equal penalty was warranted pending appeal.

Analysis: The appellant was found to have provided construction services in relation to pipelines running within industrial and commercial establishments. The demand was supported by the statutory classification of commercial and industrial construction services and by the Board circular clarifying that pipelines running within such establishments fall within the taxable ambit from 10-9-2004. In the absence of a strong prima facie case and with no plea of financial hardship, unconditional stay was not justified.

Conclusion: Unconditional waiver of pre-deposit was rejected and the appellant was directed to deposit Rs. 35 lakhs as a condition for hearing of the appeal.

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