Tribunal orders pre-deposit for service tax demand on Municipal Corporation. Appellant must comply by May 2016.

The stay application filed by the appellant was disposed of by the Tribunal after repeated adjournments due to unavailability of senior counsel. The case involved a service tax demand of Rs. 1,41,35,954 on the Municipal Corporation for renting immovable property for commercial purposes. The Tribunal ordered a pre-deposit of Rs. 30,00,000 in six equal monthly instalments, following Supreme Court directions, with non-compliance leading to legal action. The appellant was directed to comply by May 2016, in line with High Court precedent, and the stay application was accordingly disposed of.

---

---

Issues:
1. Stay application repeatedly adjourned - disposal of the application.
2. Service tax demand on renting of immovable property by Municipal Corporation.
3. Arguments on pre-deposit - comparison with similar cases - Tribunal's consistent orders.
4. High Court and Supreme Court rulings on pre-deposit - modification of Tribunal's order - directions for pre-deposit in instalments.

Issue 1: The stay application filed by the appellant was repeatedly adjourned due to the unavailability of senior counsel, despite multiple opportunities given by the Bench. The Tribunal found no valid reason for further adjournment and decided to dispose of the stay application.

Issue 2: The case involved a service tax demand of Rs. 1,41,35,954 on the Tirunelveli Municipal Corporation for providing 'Renting of Immovable Property Service' for commercial purposes like markets and shopping complexes. The Commissioner confirmed the demand under Section 73(2) of the Finance Act, 1994, along with interest, while dropping the penal proceedings.

Issue 3: The appellant's advocate sought adjournment without substantive arguments, while the respondent relied on previous Tribunal orders for pre-deposit in similar cases of other municipalities. The Tribunal noted that there was no dispute regarding the service provided and ordered pre-deposit based on Supreme Court rulings and High Court decisions upholding pre-deposit orders.

Issue 4: Referring to the Supreme Court's directions on payment of arrears in instalments, the Tribunal modified its order to direct the appellant to deposit Rs. 30,00,000 in six equal monthly instalments starting from January 2015. Failure to deposit any instalment would allow the Tribunal to proceed as per law. The appellant, being a Municipal Corporation renting out commercial properties, was directed to comply with the pre-deposit order by May 2016, following the High Court's precedent. The stay application was disposed of accordingly.

---