2015 (10) TMI 518 - HC - Service Tax

Waiver of pre-deposit - Service of sale of space for time for advertisement - Dispute arises with regards to the quantum of pre-deposit - Appellant held pre-deposit as directed by the Tribunal was unfair and excessive, still deposited some amount - Revenue held the amount as directed by the Tribunal was reasonable and justified - Held That - Ends of justice would be met if the Tribunal is directed to hear the appeal on merits without insisting for any further deposit Stay granted.

Summary

Issues:
1. Appeal under Section 35G of the Central Excise Act, 1944 against the order of the Customs Excise and Service Tax Appellate Tribunal.
2. Dispute regarding the quantum of pre-deposit required for hearing the appeal.
3. Compliance with the stay order and subsequent dismissal of the appeal by the Tribunal.

Analysis:

1. The appellant, a body corporate under the Punjab Municipal Corporation Act, 1976, charged license fee and advertisement tax. Following the inclusion of the service of sale of advertisement space under service tax, the respondent sought information on receipts. Subsequently, a show cause notice was issued for recovery of service tax. The appellant challenged this demand, leading to an appeal before the Tribunal.

2. The primary issue in this appeal was the quantum of pre-deposit required by the appellant for the appeal hearing. The appellant argued that the demand of &8377;1,71,46,656/- was excessive, while the revenue contended that the amount directed by the Tribunal was justified. The High Court, considering the facts and the appellant's deposit of 40% of the liability, decided that justice would be served by allowing the appeal to be heard on merits without insisting on further pre-deposit.

3. Notably, the Tribunal had dismissed the appeal earlier due to non-compliance with the stay order. The High Court set aside this dismissal, directing the Tribunal to proceed with the adjudication on merits in accordance with the law. Consequently, the appeal was disposed of, providing relief to the appellant in terms of the pre-deposit requirement and ensuring a fair hearing on the merits of the case.