2016 (1) TMI 925 - HC - Service Tax

Waiver of pre-deposit - appellant was suffering undue financial hardship - Tribunal has passed the impugned order directing the appellant to deposit a sum of ₹ 20,00,000/- - Held that - In the facts and circumstances of the case, this court finds it appropriate to set aside impugned order, dated 12.10.2015, passed by the Tribunal and to remit the matter back to the Tribunal, to decide the issue relating to the plea of the appellant that it was suffering undue financial hardship. Accordingly, the impugned order of the Tribunal is set aside and the matter is remitted back to the Tribunal for consideration of the said issue and to pass appropriate orders thereof. It is for the appellant to furnish sufficient evidence before the Tribunal to substantiate its claim that it was suffering undue financial hardship. - Matter remanded back.

Summary

Issues involved:
1. Appeal against impugned order of Customs, Excise and Service Tax Appellate Tribunal
2. Allegation of undue financial hardship by the appellant
3. Plea for setting aside impugned order and remitting the matter back to the Tribunal

Analysis:

1. The judgment pertains to an appeal filed against the impugned order of the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai. The appellant contested the directive of the Tribunal to deposit a sum of Rs. 20,00,000 within four weeks and raised concerns about suffering undue financial hardship. The appellant argued that the Tribunal did not consider their plea regarding financial constraints adequately.

2. The appellant claimed that they were facing financial difficulties and would not be able to comply with the deposit requirement. The respondent, however, contended that no evidence of financial hardship was presented before the Tribunal initially and that the plea was raised only during the appeal process. The appellant requested the court to set aside the Tribunal's order and reconsider the issue of financial hardship.

3. In its judgment, the High Court decided to set aside the impugned order of the Tribunal and remit the matter back to the Tribunal for a reevaluation of the appellant's claim of suffering undue financial hardship. The Court directed the appellant to provide sufficient evidence to support their financial situation before the Tribunal by the specified date. The Tribunal was instructed to review the matter and make a decision on the pre-deposit issue within two weeks of the evidence submission deadline. If the appellant failed to provide evidence, the Tribunal was authorized to proceed based on the available information.

4. The High Court disposed of the civil miscellaneous appeal with the outlined directions, emphasizing that the appellant must substantiate their claim of financial hardship to the Tribunal promptly. The judgment concluded by stating that no costs were awarded, and the connected miscellaneous petition was closed.