2013 (5) TMI 293 - AT - Central Excise

Waiver of pre deposits - utilizing CENVAT Credit for discharge of Service Tax liability on Goods Transport Agency services. - Held that - The issue covered by the decision in the case of Shree Rajasthan Syntex Ltd 2011 (8) TMI 265 , we hold that the appellant needs to be heard and his appeal disposed of by first appellate authority without insisting for pre-deposit. Thus,the order is set aside and the appeal is allowed by way of remand and without insisting pre-deposit from the appellant.

Summary

Issues:
Waiver of pre-deposit of Service Tax and education cess amount; Imposition of penalty and interest; Compliance with pre-deposit requirement; Interpretation of CENVAT Credit utilization for Service Tax liability on Goods Transport Agency services; Applicability of previous Tribunal decision in Shree Rajasthan Syntex Ltd case.

Analysis:
The judgment pertains to a Stay Petition seeking waiver of pre-deposit of Rs.68,231/- for Service Tax and education cess for the period July 2006 to September 2006. The appellant utilized CENVAT Credit for discharging Service Tax liability on Goods Transport Agency services, leading to confirmation of the amount payable along with penalty and interest by lower authorities. The first appellate authority dismissed the appeal due to non-compliance with the pre-deposit requirement.

Upon review, the Tribunal found the issue to be narrow, focusing on non-compliance with pre-deposit. Citing the decision in Shree Rajasthan Syntex Ltd case, the Tribunal held that the appellant should be heard and the appeal disposed of without insisting on pre-deposit, as the first appellate authority had not examined the merits of the case.

Consequently, the impugned order was set aside, and the appeal allowed for remand to the first appellate authority. The authority was directed to reconsider the issue afresh, ensuring adherence to principles of natural justice and refraining from demanding pre-deposit from the appellant. The Tribunal emphasized the need for a thorough examination of the case on its merits by the first appellate authority.

In conclusion, the Tribunal granted the appeal by way of remand, signifying the importance of due process and proper consideration of the appellant's case without the hindrance of pre-deposit requirements. The judgment underscores the significance of procedural fairness and the right to be heard in matters of tax disputes, as highlighted by the Tribunal's decision to remand the case for a fresh review based on the principles of natural justice.