Pre-deposit relief in manpower supply service tax dispute; Tribunal granted reduced deposit and stayed the balance during appeal.

In a service tax dispute over manpower recruitment or supply agency service, the Tribunal found prima facie support for the Revenue's case from the agreement and the appellants' licence under the Contract Labour (Regulation & Abolition) Act. It noted the appellants' contention that they were individual contractors and that part of the demand was time-barred, but held that the cited case law was not applicable at the pre-deposit stage. On that basis, the Tribunal ordered a reduced pre-deposit and waived the balance of the service tax, interest, and penalty during pendency of the appeals.

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Issues: Whether the appellants were required to make a pre-deposit for admission of the appeals in a dispute concerning service tax demand under manpower recruitment or supply agency service.

Analysis: The appeals arose from confirmation of service tax, interest, and penalty on the basis that the appellants had supplied labourers to the recipient unit. The Tribunal found prima facie support for the Revenue's stand from the agreement and from the fact that the appellants held a licence under the Contract Labour (Regulation & Abolition) Act. The Tribunal also noted the appellants' plea that they were individual contractors and that some demands were barred by limitation, but held that the cited case law was not applicable at this stage. Considering the material on record, the Tribunal fixed a reduced pre-deposit amount and granted waiver of the balance during pendency of the appeals.

Conclusion: The appellants were directed to make the specified reduced pre-deposit, and the balance of the service tax, interest, and penalty was waived and stayed during the appeal proceedings.

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