Pre-deposit relief for transmission-line works where exemption appeared applicable and the appeal was remanded for merits hearing.

Transmission-tower related works, including earthwork excavation, stub setting, concreting, tower erection and conductor stringing, were treated as prima facie capable of falling within the exemption for transmission and distribution of electricity. Because a substantial pre-deposit had already been made, the appeal was directed to be heard on merits without insisting on any further pre-deposit. The objection relating to construction of the control room was left for consideration at the merits stage before the appellate authority.

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Issues: Whether the appeal was liable to be remanded to the Commissioner (Appeals) for decision on merits without insisting on further pre-deposit, in view of the prima facie applicability of the exemption relating to transmission and distribution of electricity.

Analysis: The service contract was for transmission-tower related works such as earth work excavation, stub setting, concreting, tower erection and stringing of power conductor and earth wire. On a prima facie assessment, such activities could fall within the scope of the exemption notification covering transmission and distribution of electricity. The Tribunal also noted that the appellant had already deposited a substantial amount, which was adequate for hearing the appeal. Although the Revenue's objection regarding construction of the control room was noticed, that aspect was held to require consideration at the appeal stage on merits.

Conclusion: The matter was remanded to the Commissioner (Appeals) to decide the appeal on merits without insisting on any further pre-deposit.

Ratio Decidendi: Where the disputed activity is prima facie covered by an exemption and sufficient deposit has already been made, the appeal may be heard on merits without requiring additional pre-deposit.

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