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2012 (1) TMI 71 - SC - Service TaxPlea for waiver of Pre-deposit registered charitable society Held that - Having considered the matter in the light of the material on record we are of the opinion that the ends of justice would be subserved if the appellant is directed to deposit 1/3rd of the demand raised against them towards the service tax. If the said deposit is made on or before 15th March 2012 their appeal shall be heard by the Tribunal on merits.
Issues involved:
- Appeal against order of High Court directing deposit of 1/3rd of service tax and penalty amount as a condition for entertaining appeal under Section 86 of the Finance Act, 1994. - Appellant being a registered charitable society without resources to comply with the condition. - Disagreement on the amount to be deposited between the appellant and Revenue. - Decision on the percentage of demand to be deposited by the appellant. Analysis: The Supreme Court of India heard an appeal against the High Court's order directing the appellant to deposit 1/3rd of the service tax and penalty amount, totaling around Rs.80 crore, as a condition for entertaining their appeal under Section 86 of the Finance Act, 1994. The appellant, a registered charitable society running classes without government aid, argued through their counsel that they lacked the resources to meet this condition and would be deprived of their right to appeal against the alleged illegal demand. On the other hand, the Revenue's counsel contended that due to the high fees charged by the society, the direction to deposit 1/3rd of the demand was not unreasonable and suggested a deposit of at least 50% of the demand towards service tax. After considering the arguments and the material on record, the Supreme Court found that justice would be served by directing the appellant to deposit 1/3rd of the demand raised against them towards the service tax. The Court set a deadline of 15th March, 2012, for this deposit to be made, after which the appeal would be heard by the Tribunal on its merits. The Court disposed of the appeal with no order as to costs, effectively resolving the disagreement between the appellant and the Revenue regarding the percentage of the demand to be deposited.
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