2016 (7) TMI 1153 - HC - Service Tax

Waiver of pre-deposit - tribunal directed the appellant to deposit an amount at ₹ 15 lakhs and declining to accept the plea of the Appellant that credit should be given to the sum of ₹ 9.23 lakhs already deposited by Appellant along with the returns in Form ST-3 for the period 2008-10. - Held that - the impugned order dated 15th March 2016 of the CESTAT is modified and it is directed that in view of the Appellant having already deposited ₹ 9.32 lakhs and having further deposited ₹ 5.77 lakhs on 16th May 2016, there will be no requirement for the Appellant to make any further payment by way of pre-deposit in terms of the impugned order of the CESTAT. The CESTAT will now hear the appeal pending before it on merits.

Summary

Issues:
1. Determination of pre-deposit amount by Customs Excise and Service Tax Appellate Tribunal (CESTAT)
2. Plea of the Appellant for credit of already deposited amount
3. Opposing plea by Respondent
4. Modification of CESTAT's order by High Court

Analysis:

1. The High Court addressed the issue of the pre-deposit amount determined by CESTAT in an appeal against their order dated 15th March, 2016. The CESTAT had fixed the pre-deposit at ?15 lakhs and declined to credit the ?9.23 lakhs already deposited by the Appellant. The Appellant submitted copies of returns and challans to show the correlation between the deposited amounts and the period in question. Additionally, the Appellant deposited a further sum of ?5.77 lakhs. Consequently, the High Court found that the total amount deposited by the Appellant amounted to ?15 lakhs, as per CESTAT's pre-deposit requirement.

2. The Respondent, represented by the Senior Standing Counsel, opposed the Appellant's plea for crediting the already deposited amount. The Respondent contended that the CESTAT's order did not warrant any interference. Despite the opposition, the High Court considered the submissions made by both parties.

3. After considering the submissions, the High Court modified the CESTAT's order. It directed that since the Appellant had already deposited ?9.32 lakhs and an additional ?5.77 lakhs, totaling ?15 lakhs, there was no need for the Appellant to make any further pre-deposit payment as per CESTAT's order. The High Court further instructed that the CESTAT should proceed to hear the pending appeal on its merits without requiring any additional pre-deposit from the Appellant.

4. Consequently, the High Court disposed of the present appeal and application based on the modified terms. The order was to be issued under the signature of the Court Master for further action. The judgment clarified the pre-deposit issue, acknowledged the Appellant's payments, and allowed the appeal to proceed without any additional financial obligations from the Appellant.