2016 (9) TMI 541 - HC - Service Tax

Deposition of amount of pre-deposit to hear an appeal - against the demand for ₹ 130 crores, the stay of pre-deposit was granted to the extent of ₹ 100 crores - appellant obliged to deposit ₹ 30 crores as a pre-condition for hearing its appeal - Held that - having regard to the present nature of law with effect from 06.08.2014, the pre-deposit should not exceed 7 % of the demand. Therefore, the appellant should deposit an amount equal to 7 % of the total demand, i.e. ₹ 130 crores, within three months. - Decided partly in favour of appellant

Summary

The Delhi High Court modified the order of the Central Excise and Service Tax Appellate Tribunal (CESTAT) regarding a pre-deposit waiver. The appellant was required to deposit 7.5% of the total demand of Rs. 130 crores within three months for their appeal to be heard. The nature of the contract was argued to show that service tax was not leviable, a point not disputed by the respondent's counsel.