2011 (8) TMI 200 - AT - Service Tax

Waiver of pre-deposit - Since, the appellant s submission that they are engaged in a small time business of selling sim cards etc., we direct the appellant to deposit an amount of Rs. Four lakhs within a period of four weeks from today and report compliance of such deposit on 03.10.2011 before the learned Commissioner (Appeals), who as such compliance being reported, will restore the appeal to its original number and dispose of the same on merits without insisting on any further pre-deposit - Appeal and stay petition is disposed of accordingly.

Summary

Issues involved: Stay petition for waiver of pre-deposit, appeal against order in appeal No. OIA No. 373/2010/Commr(A)/CMC/Raj, imposition of penalty under Section 78, 76, and 77 of the Finance Act, 1994, financial hardship due to pre-deposit amount.

Analysis:

1. The stay petition and appeal were filed against the order in appeal No. OIA No. 373/2010/Commr(A)/CMC/Raj dated 19.08.2010, seeking waiver of pre-deposit of Rs. 8,93,109/- along with interest and equivalent penalty under Section 78, with additional penalties under Sections 76 and 77 of the Finance Act, 1994. The Tribunal observed that the issue at hand was narrow and could be disposed of along with the appeal. The appellant, engaged in the sale of Sim Cards, argued financial hardship in complying with the pre-deposit amount.

2. The learned Counsel representing the appellant highlighted that the first appellate authority had dismissed their appeal due to non-compliance with the pre-deposit order of Rs. 8,93,109/-. The appellant, being a small-time trader, expressed difficulty in depositing such a substantial amount. After considering the submissions and examining the records, the Tribunal acknowledged the arguable nature of the issue and the appellant's financial constraints. Consequently, the Tribunal directed the appellant to deposit Rs. Four lakhs within four weeks and report compliance by a specified date to the Commissioner (Appeals) for restoration and disposal of the appeal on merits without further pre-deposit requirements.

3. The Tribunal, after due consideration, balanced the interests of both parties by requiring a reduced deposit amount within a reasonable timeframe, taking into account the appellant's business scale and financial capacity. By providing this directive, the Tribunal aimed to ensure fairness in the proceedings while addressing the financial challenges faced by the appellant. The appeal and stay petition were disposed of accordingly, emphasizing the importance of compliance with the deposit terms for the continuation of the appeal process.