ANISHK ENGINEERING CONSTRUCTIONS Vs. C.C.E., VISAKHAPATNAM

JUDGEMENT

(1.) HEARD both sides on the stay petition.

(2.) THE stay petition is for waiver of pre -deposit of demand of service tax amounting to Rs. 79,68,670/ - which consists of two components, one for Rs. 30,42,787/ - in respect of Site Formation services and the other for a sum of Rs. 49,25,883/ - relating to Mining services. There are also order for recovery of interest on demands and penalties imposed. A sum of Rs. 5 lakhs stands paid and appropriated by the impugned order.

(3.) 1 Ld. Chartered Accountant for the appellants submits that the demand under the head Mining services is not sustainable as their activities are in relation to quarrying stones from quarry for the purpose of constructing roads and also a port at Gangavaram. The contract is only for quarrying work which involved blasting, drilling of rocks and there is no mining activity involved. 3.2 As regards the demand on Site formation services, he submits that some of the main contractors have paid the service tax on the whole value including the amount paid by them to the applicant. 3.3 He further submits that they will face undue hardship if pre -deposit is ordered. He relies on the balance sheet for the year ending 31st March, 2011, according to which, they have earned only a nominal profit of Rs. 2 lakhs.