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2015 (1) TMI 903 - HC - Service TaxWaiver of pre deposit - penalty under Sections 76, 77 and 78 - Whether, the learned Tribunal should have, on the facts and in the circumstances of this case, directed pre-deposit of 25% of the duty demanded - Held that:- Under Section 35F of the Central Excise Act, 1944, a person desirous of preferring an appeal against any order relating to any duty demand or penalty is liable to deposit the duty demanded or the penalty imposed with the Adjudicating Authority. However, where the Appellate Tribunal is of the opinion that the deposit of the duty demanded or penalty levied would cause undue hardship to such person, the Tribunal might dispense with such deposit, subject to such conditions as the learned Tribunal may deem fit to impose, so as to safeguard the interest of the Revenue. - There can be no doubt that undue hardship not only covers payment under compulsion where the appellant has a strong prima facie case, but also where the appellant has an arguable case. Where an appellant makes out a very strong prima facie case, and the Appellate Authority is satisfied that the demand is ex facie unsustainable in law, the requirement of pre-deposit may unconditionally be dispensed with. Where however, the prima facie case is not that strong, the interest of the revenue would necessarily have to he secured, and the appellant would have to be put to terms. - Decided conditionally in favour of assessee.
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