2009 (10) TMI 465 - HC - Service Tax

Stay- The petitioner herein is aggrieved by the order passed by the Commissioner (Appeals-IV), Central Excise, Ahmedabad, requiring the petitioner to pre-deposit an amount of Rs.30 lakhs. Held that- impugned order cannot be considered as order passed without application of mind. Writ jurisdiction not exercisable in present case. Service Tax demand of Rs. 30 lakhs not interfered with. Petition rejected.

Summary

The High Court of Gujarat, in the 2009 case of A.L. Dave and K.A. Puj, JJ., heard a petition from a petitioner aggrieved by an order requiring a pre-deposit of Rs.30,00,000 under the Central Excise Act. The petitioner claimed the order was passed without proper consideration, arguing that certain aspects were not evaluated by the Commissioner (Appeals). The court found the order to be interim in nature and justified the Commissioner's decision not to delve into certain questions at that stage. The court also declined to interfere with the order, given the proportionality of the deposit amount to the total tax, penalty, and interest due. The petitioner was advised to approach the Commissioner (Appeals) for a bank guarantee if desired. Ultimately, the petition was rejected by the court.