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TMI Blog2014 (12) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... is and considered the financial hardship. We do not find any justifiable ground to substitute our view on this. However, on the reference to Rule 5 before the Delhi High Court is concerned, which the Tribunal will consider in the dispute raised by the assessee, as against the order directing the assessee to deposit a sum of ₹ 1 crore, interest of justice would be met by directing the assessee to deposit a sum of ₹ 50 lakhs within a period of six weeks from today. We make it clear that the reference to the Delhi High Court [2012 (12) TMI 150 - DELHI HIGH COURT] would not stand in the way of the Tribunal considering the case of the assessee on merits. - Decided partly in favour of assessee. - C.M.A. No. 3325 of 2013 and M.P. Nos. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended that the charges collected from the customers for dishonour of cheques were remitted to the Bank and the amounts collected were not for providing any service and hence, the same could not be treated as charges collected for any banking and financial assistance and there was no liability as alleged. The claim of the assessee was considered by the Revenue and ultimately, a demand was raised for the period from September, 2004 to June, 2008, for a sum of ₹ 2,17,06,121/- under proviso to Section 73(1) of the Act and interest under Section 75 and penalty under Section 78 of the Finance Act for the contravention. The order further states that there shall be a reduction in the penalty at 25% of service tax demanded, if the tax and inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ished prima facie case for total dispensation of the pre-deposit condition. Learned Counsel appearing for the assessee, referred to the decision of the Delhi High Court striking down Rule 5 of Service Tax (Determination of Value) Rules, 2006, in the case reported in 2012-TIOL-966-HC-DELHI = 2013 (29) S.T.R. 9 (Del.) (Intercontinental Consultants Technocrats Pvt. Ltd. v. UOI), wherein, it had been held that the service tax demanded from the applicant, was not legally maintainable. On the aspect of inability to make the payment, considering the financial difficulties being faced by them, the assessee submitted that it was running a huge loss and there was an accumulated loss of about ₹ 200 crores and if any pre-deposit condition was o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee sought for total dispensation of the pre-deposit. As far as this aspect is concerned, the Tribunal has exercised its discretion on this and considered the financial hardship. We do not find any justifiable ground to substitute our view on this. However, on the reference to Rule 5 before the Delhi High Court is concerned, which the Tribunal will consider in the dispute raised by the assessee, as against the order directing the assessee to deposit a sum of ₹ 1 crore, interest of justice would be met by directing the assessee to deposit a sum of ₹ 50 lakhs within a period of six weeks from today. We make it clear that the reference to the Delhi High Court would not stand in the way of the Tribunal considering the case of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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