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2015 (10) TMI 2156 - AT - Service TaxWaiver of Pre-deposit - Failure to deposit the said amount resulted in dismissal of their Appeal without going into the merits of the case Appellant contends that he is not in a position to pay the amount directed by the ld. Commissioner(Appeals) but still can deposit certain amount out of it Held That - Ld. Commissioner(Appeals) after recording compliance would proceed to hear the case on merits and reasonable opportunity of hearing be granted to the Appellant Appellant allowed to deposit the reasonable amount pleaded by him.
Issues: Application for waiver of pre-deposit of Service Tax and penalty under section 78 and other provisions of Finance Act, 1994.
The judgment pertains to an Application seeking waiver of pre-deposit of Service Tax amounting to Rs. 37.87 Lakhs and an equal penalty imposed under section 78 and other provisions of the Finance Act, 1994. The applicant, a proprietorship concern, argued that a significant portion of the taxable value related to non-taxable services, rendering the computation of Service Tax erroneous. The Ld. Commissioner(Appeals) had directed a deposit of Rs. 18.00 Lakhs, leading to the dismissal of the appeal for non-compliance. The applicant, facing financial hardship with minimal income, offered to deposit Rs. 1.00 Lakh. The Tribunal, after considering the financial situation and prima facie merit of the case, found the offer reasonable and directed the appellant to deposit the said amount within eight weeks, allowing the appeal by way of remand for a hearing on merits by the Ld. Commissioner(Appeals) after compliance. The Tribunal emphasized granting a reasonable opportunity of hearing to the appellant, keeping all issues open. This judgment highlights the importance of considering financial hardship and prima facie merit while determining the pre-deposit amount in Service Tax cases. It underscores the need for a balanced approach in such matters, ensuring that appellants are not unduly burdened while also upholding the legal requirements. The decision to allow the appeal by way of remand signifies the Tribunal's commitment to ensuring a fair hearing and due process in tax-related disputes.
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