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2018 (8) TMI 1595 - AT - Service TaxMaintainability of appeal - appeal was dismissed on the ground of non-payment of predeposit - reverse charge mechanism for manpower supply service and professional consultancy charges remitted to foreign service provider - Held that:- In case of non-payment of pre-deposit, appeal should not have been admitted or else rejected but dismissal of appeal without consideration of its merit requires re-adjudication since predeposit of 10% of penalty amount has already been paid at this end. It is surprising that appellant has not challenged the genuineness of duty liability before the adjudicating authority and promptly met the demand imposed on it that itself would give sufficient indication about the bonafideness of the appellant in discharging tax liability. As found from the record in respect of service availed from foreign agency also, there was short-payment noticed for a particular period and raised tax amount was promptly paid under the reverse charge mechanism. However without scrutinisation of the relevant document no definite opinion can be formed by this Tribunal regarding tax liability, of the appellant, if exist at all, which is a pre-requisite for imposition of penalty since the payment of duty demand may satisfy compliance of executive instructions and may not be in confirmity to Section 265 of the Constitution of India. The matter is remanded back to the Commissioner (Appeals) for disposal of the appeal on merits - appeal allowed by way of remand.
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