2017 (4) TMI 1279 - HC - Service Tax

Waiver of Pre-deposit - Held that - the decision in the case of Safety Retreading Company (P.) Ltd. Versus Commissioner of Central Excise Salem 2012 (6) TMI 719 - CESTAT CHENNAI (THIRD MEMBER) relied upon where it was held that Service provider is required to produce documentary proof specifically indicating the value of the said goods and materials so sold by them - matter remitted back to the Tribunal for fresh consideration.

Summary

Issues:
Challenge to an interim order of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) regarding pre-deposit for prosecuting an appeal.

Analysis:
The writ petition challenged an interim order by CESTAT directing the petitioner to pay a pre-deposit amount of ?15 lakhs for prosecuting an appeal. The petitioner argued that they are not covered under the category of management, maintenance, or repair services, as they are a small unit involved in re-treading old tires. The Division Bench of the High Court granted an interim stay on the order, which was extended further. The petitioner relied on a decision by the Supreme Court in a related case to support their claim.

The respondent, through the Standing Counsel, referred to Section 83 of the Finance Act, 1944, which applies certain sections of the Central Excise Act, 1944, including Section 35F that provides for pre-deposit. The Standing Counsel also mentioned dismissals of similar writ petitions challenging pre-deposit orders in other cases.

Considering the Supreme Court's decision in a related case, the High Court remanded the matter back to CESTAT for fresh consideration. The Court directed CESTAT to take into account the Supreme Court's decision and pass appropriate orders on merits and in accordance with the law. The writ petition was allowed, the impugned order was set aside, and the matter was remanded to CESTAT for fresh consideration, emphasizing the applicability of the Supreme Court's decision in the related case.