2014 (4) TMI 404 - HC - Service Tax

Waiver of pre deposit - Held that - respondent-authority would submit the order impugned may be modified but the petitioner may be directed to re-deposit a sum of Rs.30.00 lakhs. The petitioner while willing to deposit that amount seeks reduction - petitioner is directed to re-deposit a sum of Rs.20.00 lakhs, being 50% of the amount so indicated - Decided partly in favour of assessee.

Summary

Issues:
1. Challenge to order directing re-deposit of Rs.40.00 lakhs by Commissioner (appeals)

Analysis:
The petitioner, a company providing IT software services, challenged the order by the Commissioner (appeals) directing them to re-deposit Rs.40.00 lakhs within 10 days. The petitioner did not dispute the appeal's pendency before the appellate authority but found the order harsh as they had voluntarily offered to deposit a reasonable amount. The respondent, represented by the Standing Counsel, suggested modifying the order to re-deposit Rs.30.00 lakhs, which the petitioner sought to reduce further.

The High Court modified the impugned order, directing the petitioner to re-deposit Rs.20.00 lakhs, which was 50% of the amount indicated, by a specified date. The writ petition was disposed of accordingly, with a directive for the appellate authority to promptly decide on the appeal to ensure expeditious resolution of the matter.