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2024 (6) TMI 188 - AT - Service TaxIssues involved: Failure to make mandatory pre-deposit under Section 35F of the Central Excise Act, 1944 for service tax cases. Summary: The Appellate Tribunal found that the appeal was rejected by the learned Commissioner (Appeals) due to the appellant's failure to make the mandatory pre-deposit under Section 35F of the Central Excise Act, 1944. The appellant had deposited Rs.4,30,100/- and submitted the necessary documents. However, the Commissioner (Appeals) had not decided the appeal on merits. The issue arose regarding the mode of payment for pre-deposit, with the appellant using DRC-03 under the CGST regime, which was deemed invalid for pre-deposits under Section 35F of the Central Excise Act, 1944. The Tribunal referred to a clarificatory instruction dated 28.10.2022 and highlighted the retrospective nature of such clarifications based on legal precedents. Additionally, a High Court case emphasized the need for proper legal provisions for accepting pre-deposit payments. The Tribunal remanded the matter to the Commissioner (Appeals) to decide the appeal on merits without focusing on the pre-deposit issue, following the High Court's decision. The appellant was not to seek a refund of the pre-deposit until the appeal was finally decided. This judgment addressed the confusion surrounding the mode of payment for pre-deposit under Section 35F of the Central Excise Act, 1944 for service tax cases. The Tribunal emphasized the importance of deciding appeals on merits rather than dismissing them solely based on procedural grounds. The retrospective nature of clarificatory provisions was highlighted, along with the need for proper legal provisions for accepting pre-deposit payments. The Tribunal's decision to remand the matter to the Commissioner (Appeals) aimed to ensure substantial justice and proper consideration of the appeal on its merits, in line with legal principles and precedents.
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