2010 (2) TMI 456 - AT - Service Tax

Commissioner (Appeals) - Adjudicating authority demanded service tax from assessee along with interest and penalty. Though assessee had deposited service tax amount, Commissioner (Appeals) dismissed appeal of assessee for non-compliance with direction of pre-deposit amount of Rs. 10,000. Held that - amount of service tax deposited by assessee was enough to hear and dispose of appeal.

Summary

Issues: Stay petition for waiver of pre-deposit of penalty and interest on confirmed Service Tax amount.

The judgment delivered by the Appellate Tribunal CESTAT, Bangalore, addressed the issue of a stay petition filed for the waiver of pre-deposit of penalty and interest on the confirmed Service Tax amount. The stay petition was filed due to the dismissal of the appeal by the learned Commissioner (Appeals) for non-compliance with the pre-deposit order of Rs. 10,000. The Tribunal noted that the appellant had already deposited the entire amount of service tax as confirmed by the Adjudicating Authority. Despite this, the Commissioner (Appeals) directed the appellant to make an additional deposit of Rs. 10,000, leading to the rejection of the appeal. The Tribunal, after careful consideration of submissions and records, found the deposited service tax amount to be sufficient for hearing and disposing of the appeal. As a result, the impugned order was set aside, and the appeal was allowed by way of remand to the Commissioner (Appeals) for a fresh consideration without insisting on any further deposit, ensuring the principles of natural justice are followed.

In conclusion, the Tribunal allowed the appeal by way of remand to the learned Commissioner (Appeals) and disposed of the stay petition. The judgment emphasized the importance of ensuring fairness and adherence to the principles of natural justice in dealing with matters related to pre-deposit of amounts in tax disputes, ultimately leading to a just and equitable resolution of the issue at hand.