2011 (2) TMI 88

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....lation services and construction of residential complex services. They also availed the benefit under the Works Contracts Composition Scheme under Circular No.98 /1/2008-ST, dated 04.1.2008 with effect from 01.6.2007 in respect of contracts entered into prior to 01.6.2007. The second respondent issued show cause notice dated 23.10.2008 proposing service tax, interest and penalty during the period from June, 2007 to March, 2008 on the ground that the petitioner was not eligible to avail the benefit under the Composition Scheme, and they had to pay service tax at the full rate of 12.36%. By order dated 28.1.2009, the second respondent confirmed the demand of service tax of Rs.7,78,34,714 /-, and interest and penalty of Rs.7,80,00,000 /-. Bein....

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....unal suffers from error and the ratio in Nagarjuna Construction Company Ltd v Government of India 2010 [19] S.T.R.321 (AP) : [2010] 28 STT 369 : (2010) 35 VST 266 (AP) was not considered in the proper perspective. 3. The Senior Counsel for Central Excise and Customs, Mr.A.R.Reddy submits that an order of waiver of pre-deposit, a mandatory condition precedent for availing the appellate remedy, is not a matter of course. While passing any order, the Tribunal is required to safeguard the interest of the Revenue. The impugned order was passed keeping in view the Scheme of Section 35F of the Act and, therefore, no interference is called for. 4. The issue before the Tribunal, at the interlocutory stage, was whether the petitioner had demonstrat....

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....ile considering the applications for stay or waiver of pre-deposit under Section 35F of the Act. 1) The applications for stay should not be disposed of in a routine manner unmindful of the consequences flowing from the order requiring the assessee to deposit full or part of the demand; 2) Three aspects to be focused while dealing with the applications for dispensing of pre-deposit are: (a) prima facie case, (b) balance of convenience, and (c) irreparable loss; 3) Interim orders ought not to be granted merely because a prima facie case has been shown; 4) The balance of convenience must be clearly in favour of making of an interim order and there should not be the slightest indication of a likelihood of prejudice to the interest of pub....