Limited pre-deposit and stay of recovery granted where most service tax liability was already discharged under works contract scheme

Where an assessee had already discharged a substantial part of the service tax liability under the works contract scheme, the Tribunal considered the remaining disputed demand to be only a small balance and noted that the assessee had not been properly guided when the statement was recorded. On that basis, it directed only a limited further deposit and granted protection against recovery of the balance during the pendency of the appeal. The assessee was required to deposit Rs. 24,000 within four weeks, after which the balance pre-deposit was waived and recovery of the remaining dues was stayed pending appeal.

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Issues: Whether, in the circumstances of the case, the assessee was entitled to waiver of the balance pre-deposit and stay of recovery pending appeal.

Analysis: The assessee had already discharged a substantial part of the service tax liability under the works contract scheme. The remaining disputed amount was found to be only a small balance, and the order noted that the assessee had not been properly guided when the statement was recorded. In these circumstances, the Tribunal considered it to direct a limited further deposit and grant protection against recovery of the balance during the pendency of the appeal.

Conclusion: The assessee was directed to deposit Rs. 24,000 within four weeks, and on such deposit the balance pre-deposit was waived and recovery of the remaining dues was stayed during the appeal.

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