2014 (9) TMI 485 - HC - Service Tax

Waiver of pre-deposit and stay of further proceedings for recovery proceedings - Held that - Keeping in view the submissions advanced by the learned counsel for the parties and considering the provisions contained in Section 35F of the Act, and so also the fact that the petitioner is a statutory body functioning under the Administrative control of the Government of India, Ministry of Commerce and Industries, we are satisfied that the following order shall meet the ends of justice The petitioner shall deposit the entire amount due demanded within a period of eight weeks from today. Failing which, their appeal shall stands dismissed for non-prosecution. If the amount as aforementioned is deposited within the extended time, the Appellate Tribunal shall decide the appeal on merits in accordance with law.

Issues:
1. Challenge against the order passed by the Customs, Excise and Service Tax Appellate Tribunal on a Stay Application.
2. Petitioner seeking waiver of pre-deposit and stay of further proceedings for recovery of adjudicated liability.
3. Interpretation of Section 35F of the Central Excise Act, 1944.
4. Respondent's request for the Appellate Tribunal to hear and decide the appeal on merits.
5. Consideration of the petitioner being a statutory body under the Administrative control of the Government of India, Ministry of Commerce and Industries.

Analysis:
1. The writ petition challenges the order of the Customs, Excise and Service Tax Appellate Tribunal regarding Stay Application No. 133/2012 in Service Tax Appeal No. 251/2012. The petitioner sought waiver of pre-deposit and stay of further proceedings for recovery of the adjudicated liability, as per the order passed by the Commissioner of Central Excise and Service Tax, Guntur on 31-10-2011.

2. The learned counsel for the petitioner referred to Section 35F of the Central Excise Act, 1944, and stated that the petitioner must deposit the entire demanded amount within 8 weeks. The Appellate Tribunal directed the petitioner to remit the assessed liability within eight weeks and report compliance by a specified date, failing which the appeal would be dismissed for non-compliance.

3. The respondent's counsel, acknowledging the provisions of Section 35F of the Act, requested the Appellate Tribunal to hear and decide the appeal on its merits. The Court, after considering the submissions and the petitioner being a statutory body under the Government of India, Ministry of Commerce and Industries, ordered the petitioner to deposit the entire amount demanded within eight weeks. Failure to comply would result in the appeal being dismissed for non-prosecution.

4. The Court clarified that if the petitioner deposited the required amount within the extended time, the Appellate Tribunal would proceed to decide the appeal on its merits in accordance with the law. The judgment emphasized that all contentions on merits were kept open, and the Court had not examined the case's merits, ensuring that the decision was based solely on procedural aspects and compliance with statutory requirements.

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