TMI Blog2016 (4) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... ition Nos. 16517-16539 of 2016 (T-RES) - - - Dated:- 24-3-2016 - Anand Byrareddy, J. For the Appellant : Sri Shivadass G Adv For the Respondent : Sri A S Ponnanna, AAG-II of Sri S V Girikumar, AGA ORDER Heard the learned counsel for the petitioner and the learned Additional Advocate General who has entered appearance for the State Government. 2. The petitioner is a public sector undertaking established by the Government of India under the Ministry of Defence. It is engaged in designing, developing and manufacturing products such as military radars, electronic warfare systems, naval systems, avionics, defence communication equipment, solar products, electronic voting machings etc. and caters to the defence and non-def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thereafter, proposition notices have been issued dated 19.01.2016 proposing re-assessment of returns under the provisions of the KVAT Act and CST Act. Inter-alia, it was proposed to reject the classification of Electronic Voting Maching(EVM), Digital Flight Control Computer and its parts, Radar Warning Systems and its parts, Missile Warning System and all other products sold by the petitioner under the prevailing IT Product Notifications and instead of it sought to classify the same as unscheduled commodity attracting tax at 14.5% apart from assigning reasons for rejecting the classification of the said products. The petitioner had appeared before the third respondent and filed objections and filed written submissions in support of the cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on any such pre-deposit in considering appeals filed in such situations. The said judgment was rendered while dealing with Essential Commodities Act. This Court in Bharat Earth Movers Limited, Bangalore, vs State of Karnataka and others [2016 (84) Kar.L.J.332] and the Bombay High Court in the case of Rashtriya Chemicals and Fertilisers Limited vs Union of India [2011 (270) E.L.T.11 (Bom)] have applied the ratio laid down in respect of similar provisions under other enactments. Therefore, the learned counsel would submit that insofar as the present demand is concerned, the appeal before the Appellate Authority would not be entertained unless there is a pre-deposit. As there is no discretion offered to the Appellate Authority to waive pre-dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be given a waiver, it would be serving the purpose of both the State and the petitioner if a compromise could be arrived at in the petitioner being directed to deposit atleast 10% of the demand amount before 31st March 2016 and furnishing of a bank guarantee for the remaining 20% of the demand, subjet to the result of the appeal. Accordingly, the Appellate Authority is directed to receive the said deposit of 10% to be made on or before 31st March 2016 as well as a bank guarantee for the remaining 20% of the demand and proceed in accordance with law. 5. Since large amounts are involved and since the petitioner is a Government of India undertaking, it would be in the interest of the nation that the matter is heard at the earliest and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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