Court Upholds 50% Waiver Decision, Bank Guarantee Required. Compliance Emphasized Pending Supreme Court Ruling

The High Court upheld the Tribunal's decision to waive only 50% of the pre-deposit amount in an appeal against the Commissioner's order. The appellant's failure to prove financial hardship led to the requirement of a bank guarantee and deposit of the remaining 50%. The Court dismissed the appeal as it found no legal basis for consideration. Regarding the issue of Service Tax levy pending before the Supreme Court, the High Court emphasized compliance with existing law until the Supreme Court's ruling. The appeal was dismissed, but the compliance time was extended, with the Court clarifying that prior findings would not bind the final hearing.

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Issues:
1. Whether the fixed shared agreement constitutes renting of immovable property service for service tax levyRs.
2. Justification of the Tribunal's decision under Section 35F of the Central Excise Act, 1944.

Issue 1:
The appellant appealed against the Commissioner's order before the Tribunal, seeking waiver of pre-deposit and stay of the order. The Tribunal assessed the prima facie facts and found the case not strong enough for full waiver, thus waiving only 50% of the pre-deposit amount. The appellant failed to establish financial hardship, leading to the requirement of a bank guarantee and the deposit of the remaining 50%. The High Court declined to substitute its assessment, noting no perversity in the Tribunal's decision. The Court found no legal element for consideration and dismissed the appeal.

Issue 2:
The appellant's counsel mentioned the issue of Service Tax levy is pending before the Supreme Court. The High Court highlighted that until the Supreme Court rules on the matter, the law must be followed. Consequently, the appeal was dismissed, but the compliance time with the Tribunal's order was extended by one month. The Court clarified that the prima facie findings by the Tribunal or the High Court would not be binding in the final hearing. The miscellaneous applications were also dismissed without costs.

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