Pre-deposit waiver for construction service demand was limited where school trusts collected fees and nonprofit status was unclear.

Complete waiver of pre-deposit was declined for a demand under Commercial or Industrial Construction Service because the construction was claimed to be for trusts running schools, but the material showed the trusts were collecting fees and their non-profit character was not clearly established. Partial relief was granted instead, with the applicant directed to deposit Rs. 50,000 within six weeks and the balance demand stayed on such deposit.

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Issues: Whether the applicant was entitled to complete waiver of pre-deposit in respect of the demand arising from Commercial or Industrial Construction Service.

Analysis: The applicant claimed that the construction service was rendered to trusts running schools. The available material showed that the trusts were collecting fees for their activities, and on that basis it was not clear that the trusts were non-profit organisations. The request for total waiver was therefore not accepted, but the applicant was directed to make a partial deposit of Rs. 50,000 within six weeks.

Outcome: Partial waiver of pre-deposit was granted, with recovery of the balance demand stayed on deposit of the specified amount.

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