Tribunal grants waiver of pre-deposit for service tax in construction activity case

The Tribunal granted the applicant's request for waiver of pre-deposit of penalty for service tax in a construction activity case, as the explanation to Sec. 65(105) was deemed prospective. The remaining dues were waived, and recovery stayed during the appeal process.

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The applicants filed for waiver of pre-deposit of penalty for service tax in a construction activity case. They had paid a significant amount already. The Revenue's demand was based on an explanation to Sec. 65(105) from 1.7.2010. The Tribunal found merit in the applicant's contention that the explanation is prospective, so pre-deposit of remaining dues was waived and recovery stayed during the appeal. Stay petition was allowed.

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