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2016 (7) TMI 158 - HC - Service TaxWaiver of pre-deposit - demand of service tax - undue hardship - Tribunal concluded that the assessee has failed to establish prima facie case and dismissed the said application on the ground that the assessee failed to prove undue hardship and ordered substantial amount of pre-deposit - Section 35-F of the Central Excise Act, 1944 - the main grievance of the assessee is that the assessee is running in loss for the last many years prior to the demand and on the date of demand for payment of duty or service tax. To substantiate the said contention, the assessee produced profit & loss account statements and Balance sheets. Held that:- The reasoning recorded by the Tribunal to decline the waiver of pre-deposit is based on accounting procedure of the assessee, even otherwise the loan and advances of the assessee is ₹ 11.35 crores besides Sundry Debtors to a tune of ₹ 08.58 crores. The assessee can realise the amount from the Sundry Debtors and loans and advances, and make pre-deposit as required under Section 35-F of the Central Excise Act. Therefore, the reasoning recorded by the Tribunal to decline waiver of predeposit is in accordance with law for the reason that the assessee himself disclosed the claim for depreciation to a tune of ₹ 6.80 crores, Sundry Debtors to the tune of ₹ 8.58 crores and loans and advances of ₹ 11.35 crores. Even otherwise, the assessee is a partnership firm, the partners are liable to pay statutory dues to the Government. Therefore, the order of the Tribunal does not indicate that the assessee can sell away the assets and make predeposit. On an overall consideration of the material on record, the assessee possessed sufficient means to comply with the requirement of Section 35-F of the Central Excise Act and that the assessee would not be put to financial hardship for compliance of the same. - No relief - Writ Petition shall stand dismissed - Decided against the petitioner.
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