Appellant Granted Partial Stay on Service Tax Demand, Waiver Issued with Compliance Directive

The Tribunal partially granted the appellant's stay petition for waiver of pre-deposit of service tax demand. While acknowledging that the activities did not strictly fall under "Mining services," uncertainty regarding service tax payment by main contractors led to a directive for the appellant to deposit an additional amount. Upon compliance, the pre-deposit of remaining dues was waived, and recovery stayed pending appeal disposal.

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Issues:
1. Stay petition for waiver of pre-deposit of service tax demand.
2. Sustainability of demand under "Mining services" and "Site formation services".
3. Claim of undue hardship by the appellant.
4. Consideration of submissions from both sides.
5. Decision on the waiver of pre-deposit and stay of recovery.

Analysis:
1. The appellant filed a stay petition seeking a waiver of pre-deposit of service tax demand amounting to Rs. 79,68,670, comprising two components: Rs. 30,42,787 for "Site Formation services" and Rs. 49,25,883 for "Mining services," along with interest and penalties.

2. The appellant's Chartered Accountant argued that the demand for "Mining services" was unsustainable as their activities involved quarrying stones for construction purposes, not mining. Regarding "Site formation services," it was claimed that main contractors had already paid service tax on the entire value, but specific details were lacking.

3. The appellant contended that pre-deposit would cause undue hardship, citing a nominal profit of Rs. 2 lakhs as per the balance sheet ending March 31, 2011.

4. The Joint Commissioner reiterated the findings of the Commissioner, supporting the demand for service tax.

5. After considering submissions and contract details, the Tribunal found that the activities related to quarrying stones for construction did not strictly fall under "Mining services." However, it was unclear if main contractors had paid service tax on the full value, leading to a denial of full waiver. The appellant was directed to deposit an additional Rs. 10 lakhs within eight weeks, with a compliance report due by January 17, 2012. Upon this deposit, the pre-deposit of the remaining dues was waived, and recovery stayed pending appeal disposal.

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