2014 (2) TMI 95 - AT - Service Tax

Waiver of pre deposit - Imposition of eqivalent amount of penalty u/s 76, 77 & 78 - Tribunal order predeposit - High Court directed to deposit Rs 1 Crore within 4 weeks - Supreme Court also dismissed application and ordered that in case the petitioner complies with the order of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) within three weeks from today, the compliance shall be treated as within time and the CESTAT shall hear the appeal on merits - Held that - Petitioner has deposited only Rs 1 Crore - order of the Supreme Court dt.04.03.2013, which directed compliance with the order of this Tribunal dt. 26.06.2012 has not been complied with. There is therefore failure of compliance of the order of this Tribunal as mandated by the Supreme Court and consequent and failure of pre-deposit - Since the order of this Tribunal dt. 26.06.2012 directed to be complied with by the order of the Supreme Court dt. 04.03.2013 has not been complied with - Therefore decided against assessee.

Summary

Issues:
Assessment of Service Tax liability, imposition of penalty under Finance Act, 1994, stay of realization of tax dues, compliance with pre-deposit orders, interpretation of Supreme Court order.

Analysis:

The case involved the assessment of Service Tax liability and penalty under the Finance Act, 1994 by the Commissioner of Central Excise, Jammu & Kashmir. The Commissioner assessed a significant amount as Service Tax liability and imposed penalties under various sections of the Act. The petitioner sought a stay on the realization of the tax dues and waiver of pre-deposit, which was initially denied by the Tribunal, requiring the petitioner to pre-deposit the entire tax amount for admission of appeal. Subsequently, the High Court directed the petitioner to deposit a specific amount before a certain date to prevent dismissal of the appeal.

The petitioner then approached the Supreme Court through a special leave petition, which was dismissed with a condition to comply with the Tribunal's order within a specified period. Despite this, the petitioner only deposited a partial amount, leading to non-compliance with the Supreme Court's order and the Tribunal's requirement for pre-deposit. The petitioner argued that the Supreme Court's order should be interpreted as directing the deposit of a lesser amount, but the Tribunal rejected this contention, emphasizing the clarity of the Supreme Court's directive.

As the petitioner failed to comply with the pre-deposit requirement as mandated by the Tribunal and the Supreme Court, the appeal was rejected by the Tribunal. The Tribunal highlighted the importance of strict compliance with court orders and noted the lack of adherence to the pre-deposit conditions, resulting in the dismissal of the appeal.

In conclusion, the judgment emphasized the significance of complying with court orders, particularly regarding pre-deposit requirements in legal proceedings. The failure to adhere to the specified deposit amounts within the stipulated timelines led to the rejection of the appeal, underscoring the importance of strict adherence to judicial directives in such matters.