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PRE-DEPOSIT OF DEMAND BEFORE APPEAL IN SERVICE TAX

Service Tax - By: - Dr. Sanjiv Agarwal - Dated:- 5-6-2017 - Pre-deposit of Service Tax Pre-deposit means the deposit of amount of duty (service tax) and penalty pending the disposal of the appeal. According to Section 35F of the Central Excise Act, 1944, any person desirous of appealing against the order shall pending the appeal, deposit the duty demanded or penalty levied thereon. It may be noted that pre-deposit is of service tax and penalty and not of the interest, because interest has to be .....

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right and can be circumscribed by the conditions of grant. Though the pre-deposit is required to be made pending the appeal, the appellate authority is empowered to dispense with it if it may cause undue hardship to the person concerned. Mere filing of appeal or admitting the appeal does not amount to grant of stay. Pre-deposit is only of a duty (service tax) and penalty. Thus, pre-deposit of interest is not required only tax and penalty are required to be pre-deposited. So where demands are hu .....

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case where duty or duty and penalty are in disputes or penalty, where such penalty is in dispute for filing second stage appeal before the Tribunal. The amount of pre-deposit payable would be subject to a ceiling of ₹ 10 Crore. Section 35F states that the appeal should not be entertained unless the following amount is pre-deposited Order passed by Appellate Authority % of duty and/or penalty required as pre-deposit Any officer of a rank lower than Commissioner of Central Excise Commissi .....

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ral Excise Act, 1944 required that duty demanded and penalty has to be deposited in full before filing appeal with exception that appellate authority had discretion to waive off pre-deposit partially or fully taking into consideration prima facie merits, financial hardship and keeping Revenue s interest. Under new provision assessee has been given more benefit inasmuch as now full deposit of duty and penalty is not required to be made. Now from beginning 92.5% or 90% of tax is not required to be .....

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ot wanting to deposit the tax at the rate of 7.5% or 10% of the duty demanded or penalty levied, as the case may be, for filing appeal. Otherwise the statute permits everyone to prefer an appeal. The right of appeal has not been taken away per se. It is settled law that legislature while granting the right of appeal, can always impose conditions for exercise of such right. In absence of any special reason, there is no legal or constitutional impediment to the imposition of such conditions. Under .....

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