ORDER
P.K. Das, Member (J)
1. The applicants filed these applications for waiver of predeposit of tax of Rs. 79,638/- and penalty of Rs. 4,000/-
2. Ld. Advocate on behalf of the applicants submits that the adjudicating authority denied Input Service Credit on various items. He submits that the major portion of the demand is against denial of credit on pandal and shamiana services. He submits that this pandal and shamiana services were used for business purposes in connection with strike in the factory.
3. Ld. Advocate also submits that Clause (77a) of Section 65 of the Finance Act, 1994 provides that pandal and shamiana means a place specially prepared or arranged for organizing an official, social or business function.
Ld. DR reiterates the findings of the Commissioner (Appeals). He submits that the appellants failed to produce any evidence in respect of the use of the pandal and shamiana for business function.
4. After hearing both the sides and on perusal of the records, I find force in the submissions of the ld. DR. It is seen from the impugned order that the appellant has taken a general stand that the pandal and shamiana were used by them for business function. The adjudicating authority observed that service tax credit amounting to Rs. 70,847/- on pandal and shamiana services has been availed by the appellant on bills and they stated that these were used by them for the business purposes. But no material was produced by the appellant in support of their contention. Therefore, the applicant failed to make out a prima facie case for waiver of pre-deposit of entire amount of tax and penalty. Accordingly, the applicant is directed to pre-deposit the tax of Rs. 35,000/- (Rupees Thirty-Five Thousand only) within six weeks. Upon deposit of the said amount, the pre-deposit of the balance amount of tax and penalty is waived till the disposal of the appeal. Compliance to be reported on 26-12-2007.
(Order dictated and pronounced in the open Court on 7-11-2007)