2011 (2) TMI 1136 - HC - Service Tax

10% of the demand as security while entertaining the appeal - Held that - In view of the amendment to the CENVAT Credit Rules in 2010 providing for proportionate credit, the order which is challenged in appeal has been recalled by the authorities and therefore, the appeal itself has become infructuous. In this view of the matter, the impugned order passed in the said appeal has no legs to stand. As the entire matter is concluded, this appeal is not maintainable and it is wholly misconceived. When the order challenged in the appeal before the Tribunal itself is not in existence, this appeal filed against the interim order in that appeal certainly is not maintainable.

Summary

The Karnataka High Court rejected the revenue's appeal challenging an interim order directing payment of 10% of demand as security. The respondent argued that the appeal became infructuous due to an amendment in the CENVAT Credit Rules. The court found the appeal not maintainable as the order challenged no longer existed. The appeal was rejected.