2009 (1) TMI 750

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..... Respondent. ORDER In terms of the impugned order, the appellants are required to pre-deposit the following amounts : (a) Service tax of Rs. 73,20,545/- and education cess 146411/- (b) Penalty of Rs. 2,00,000/- under Section 78 2. We heard both sides. 3. Revenue proceeded against the appellants on the ground that they had undertaken the activity of Commercial and Industrial Construction Serv .....

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..... urposes of profit are not taxable, being non-commercial in nature........". 5. It was urged that in the present case only 10% to 20% of the patients would be treated freely. The hospital is not at all a charitable organization. In respect of the other 80% patients, the appellants would be reaping profit and in that sense, according to the Revenue, the activity would definitely fall under the Comm .....

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..... t this stage, it is not possible for us to come to a definite conclusion. We also cannot say that the appellants prima facie have a strong case on merits. However, the learned Advocate informed that the appellants had already deposited a sum of Rs. 58.65 lakhs in the matter. This amounts to 75% of the amount demanded. The amount already deposited is treated as pre-deposit. In these circumstances, .....

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