2008 (3) TMI 280 - HC - Service Tax

Writ petition for quashing the revision order passed by the Commissioner - against impugned order, alternative remedy of filing appeal before tribunal has not been availed by the petitioner - petitioner may be permitted to withdraw this petition with liberty to file appeal within 30 days from today before the Tribunal - same shall be entertained and decided on merits by the Tribunal within a period of three months, without insisting for further pre-deposit

Summary

Issues:
1. Writ petition under Articles 226/227 for quashing order dated 29.11.2006 passed by Commissioner, Central Excise Range Rail Majra.
2. Deposit of Rs.12.00 lacs by petitioner to show bona fide.
3. Availability of appeal remedy under Section 86 of the Finance Act, 1994.
4. Objection raised by respondents regarding non-availment of alternative remedy.
5. Permission sought by petitioner to withdraw petition with liberty to file appeal before Tribunal.

Analysis:
1. The petitioner filed a writ petition under Articles 226/227 of the Constitution of India seeking to quash the order dated 29.11.2006 passed by the Commissioner, Central Excise Range Rail Majra. The order was issued in exercise of the power under Section 84 of the Finance Act, 1994, revising the previous order dated 30.11.2004 passed by the Assistant Commissioner, Central Excise Division, Phagwara.

2. To demonstrate bona fide, the petitioner, through counsel, agreed to deposit a sum of Rs.12.00 lacs with respondent No.2. The amount was indeed deposited, and both parties filed their written statements. The arguments were heard, and it was acknowledged that the appeal remedy under Section 86 of the Finance Act, 1994, before the Appellate Tribunal had not been utilized by the petitioner.

3. While the respondents raised an objection regarding the petitioner not availing the alternative remedy of appeal, they also indicated that if the petitioner chose to pursue the appeal now, the department would not contest on grounds of limitation or pre-deposit.

4. In light of these discussions, the petitioner, through counsel, expressed the intention to withdraw the petition with the liberty to file an appeal before the Tribunal within 30 days. The court granted permission for withdrawal with the mentioned liberty. It was specified that if the petitioner filed an appeal within the stipulated time frame, the Tribunal would entertain and decide the appeal on merits within three months without requiring any further pre-deposit, considering the Rs. 12.00 lacs already deposited as sufficient for appeal filing conditions.