2012 (8) TMI 52 - AT - Central Excise

Unconditional waiver of pre-deposit of interest and penalty - Held that - As the appellant submits that the appellant was in bona fide belief that they have paid the entire amount of Service Tax on the basis of certificate issued by Chartered Accountant has admitted that the appellant has paid only a sum of Rs.6,24,21,219/- out of Rs.18,08,18,228 - direction to make a pre-deposit of balance amount of along with 25% of penalty within a period of eight weeks.

Summary

Issues: Misrepresentation of payment of Service Tax, Contempt of Court, Pre-deposit of balance amount

Misrepresentation of payment of Service Tax:
The appellant claimed to have paid the entire amount of Service Tax, but a report submitted by the Assistant Commissioner revealed otherwise. The Tribunal expressed strong objection to this discrepancy and decided to verify the actual payment status. The appellant, through their Counsel, stated that they believed the entire amount was paid based on a certificate from a Chartered Accountant. However, it was confirmed that only a partial amount had been paid. Consequently, the Tribunal issued a show-cause notice to the appellant for potentially misleading the Court. The appellant was directed to respond within four weeks, with the matter set for further hearing on a specified date.

Contempt of Court:
In response to the misrepresentation, the Tribunal considered initiating Contempt of Court Proceedings against the appellant for misleading the Court regarding the payment of Service Tax. The appellant was given a deadline to provide a reply to the show-cause notice within four weeks. The Tribunal took a serious view of the discrepancy between the appellant's claim and the actual payment status, leading to the decision to potentially pursue Contempt of Court Proceedings.

Pre-deposit of balance amount:
Given the discrepancy in the payment of Service Tax and the potential Contempt of Court issue, the Tribunal decided to recall its previous order granting unconditional waiver of pre-deposit of interest and penalty. The appellant was directed to make a pre-deposit of the balance amount of Service Tax along with 25% of the penalty within eight weeks. Compliance was to be reported by a specified date, following which the balance amount of penalty and interest would be waived during the pendency of the appeal. The Tribunal emphasized the importance of accurate representation and compliance with payment obligations in legal proceedings to maintain the integrity of the judicial process.