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2013 (10) TMI 1269 - AT - Service TaxAir Travel Agents service - Waiver of pre-deposit - The impugned interim order of the respondent, passed under Section 35F , directing the petitioner to pay the entire amount of service tax, as a pre-deposit, as a pre-condition for hearing the appeal filed by the petitioner, is onerous in nature - in view of the averments made in the affidavit filed in support of the writ petition and the impugned order of the respondent is modified directing the petitioner to deposit 30% of the amount of service tax On the petitioner complying with the said condition, the respondent shall hear and dispose of the appeal on merits and in accordance with law - Following decision of M/s. Asveen Air Travels (P) Limited, Versus The Commissioner of Central Excise (Appeals) 2011 (3) TMI 317 - MADRAS HIGH COURT - Decided in favour of assessee.
Issues: Application for waiver of predeposit of tax, interpretation of Tribunal decisions on predeposit percentages.
In the judgment by the Appellate Tribunal CESTAT CHENNAI, the applicant sought waiver of predeposit of tax amounting to Rs. 24,69,920/- along with interest and penalty for the period from July 2003 to January 2008. The applicant, engaged in booking air tickets, faced a tax demand on commissions received from a company for ticket bookings through a computer reservation system. The applicant had already deposited Rs. 9 lakhs. The appellant's representative cited a Tribunal case involving M/s. Asveen Air Travels Pvt. Ltd., where a 30% predeposit was directed based on a High Court order. On the contrary, the respondent relied on another Tribunal case, Janta Travels Pvt. Ltd. Vs. CCE, Delhi, where a 50% predeposit was ordered. Upon review of the submissions and records, the Tribunal noted the direction in the M/s. Asveen Air Travels case for a 30% predeposit in line with the High Court's order. Consequently, the Tribunal found the deposit made by the applicant sufficient for granting waiver and stay. Therefore, the balance tax, interest, and penalty predeposit was waived, and recovery stayed until the appeal's disposal. Ultimately, the Tribunal allowed the stay petition, providing relief to the applicant. The judgment was delivered by Shri. P.K. Das.
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