2015 (8) TMI 689 - HC - Service Tax

Waiver of pre deposit - whether the appellant should be made to comply with the order of the Tribunal by depositing ₹ 1 crore more or not - Held that - Tribunal had relied upon its earlier order dated 31.12.2014, to come to the conclusion that the balance of convenience was in favour of the revenue. But, the Tribunal has omitted to see that the earlier order dated 31.12.2014 had actually been set aside by this Court by the order dated 26.02.2015. Once the order is set aside and the matter is remanded, the Tribunal was obliged to look into the issue afresh. It is relevant to note that the earlier order dated 31.12.2014 was passed, in the absence of the counsel for the appellant. Therefore, placing reliance upon the earlier order was erroneous. - order of the Tribunal is set aside - Amount of pre deposit reduced - Decided partly in favour of assessee.

Summary

Issues:
1. Pre-deposit of Rs. 2 crores as a condition for entertaining the appeal.
2. Service tax liability of Rs. 7,71,71,776/- for the period from 01.04.2006 to 31.04.2011.
3. Tribunal's order directing the appellant to deposit Rs. 2 crores.
4. Tribunal's reliance on an earlier order set aside by the High Court.
5. Appellant's appeal challenging the Tribunal's order.

The judgment pertains to an appeal arising from a Customs, Excise, and Service Tax Appellate Tribunal order requiring the appellant, a Civil Engineering Contractors partnership firm, to make a pre-deposit of Rs. 2 crores to entertain the appeal. The appellant was charged with a service tax liability of Rs. 7,71,71,776/- for a specific period. Despite opportunities for a personal hearing, the appellant failed to appear, leading to an ex-parte order. Subsequent appeals were made, with the Tribunal initially demanding Rs. 4 crores as a pre-deposit, eventually reduced to Rs. 2 crores after the High Court's intervention.

The High Court found fault with the Tribunal's reliance on an earlier order that had been set aside by the Court, emphasizing the need for a fresh assessment post-remand. Given the appellant's substantial deposits totaling around Rs. 98.60 lakhs, the Court set aside the Tribunal's order and directed it to hear and dispose of the appeal within six months. To round off the total deposited amount to Rs. 1 crore, the appellant was instructed to pay an additional Rs. 1,40,000/- within two weeks. The Court opted for this action considering the significant sum already deposited and the need for a timely resolution of the case.

In conclusion, the High Court allowed the appeal, set aside the Tribunal's order, and directed a prompt disposal of the appeal on its merits. The Court emphasized the importance of a fresh assessment post-remand and the need to consider all relevant aspects, including hardship and balance of convenience. The appellant was given a specific timeframe to complete the required payment to reach the rounded-off deposit amount.