Taxability of activity of re-rubberizing of rollers/spindles for use in printing – Prima facie no case for full waiver of pre-deposit

On a careful consideration of the case records and the submission made by both sides, we find that the appellants have not made out a prima facie case for complete waiver of the dues adjudged against them. The impugned order sustained demand of service tax of Rs 7,67,673/, applicable interest, penalty @ 200/- per day or @ 2% of the tax confirmed per month for the period the tax was in arrears, penalty of Rs 5000/- under Section 77 of the Act and penalty of Rs 12,00,000/- under Section 78 of the Act. We find that a pre-deposit of Rs 1,00,000/- (rupees one lakh only) will be appropriate to hear ...