Direction to Deposit Service Tax before Statutory Period of 3 Months u/s 86 of Finance Act: Kerala HC grants One month Time to File Appeal [Read Order]
Direction to Deposit Service Tax – Service Tax – Deposit – Statutory Period – Kerala HC – taxscan
Direction to Deposit Service Tax – Service Tax – Deposit – Statutory Period – Kerala HC – taxscan
The Kerala High Court granted one month time to file appeal in the matter of direction to deposit service tax before the Statutory Period of 3 Months under Section 86 of the Finance Act, 1994.
The petitioner, the Kurichy Service Co-operative Bank Limited, an assessee under the provisions of Service Tax, has suffered an Order-in-Original dated 22.02.2021, against which he filed an appeal before the Appellate Authority. Before the statutory period of three months, as provided under Section 86 of the Finance Act 1994, the 3rd respondent has issued notice asking the petitioner to deposit the Service Tax liabilities.
The Counsel for the petitioner submitted that the petitioner has already prepared the appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Bangalore, and he will file the appeal within a period of one month. He further submitted that he will make payment of the remaining statutory deposit of 10%.
Section 86 of the Finance Act reads as “Save as otherwise provided herein an assessee aggrieved by an order passed by a Principal Commissioner of Central Excise or Commissioner of Central Excise under section 73 or section 83A by a Commissioner of Central Excise (Appeals) under section 85, may appeal to the Appellate Tribunal against such order within three months of the date of receipt of the order”.
The First proviso to Section 86 of the Finance Act reads as “that where an order, relating to a service which is exported, has been passed under section 85 and the matter relates to grant of rebate of service tax on input services, or rebate of duty paid on inputs, used in providing such service, such order shall be dealt with in accordance with the provisions of section 35EE of the Central Excise Act, 1944.”
A Single Judge Bench of Justice Dinesh Kumar Singh observed that “Considering the submissions, the petitioner is granted one month's time from today to file an appeal against the Ext.P2 order. For a period of one month from today, Ext.P3 impugned notice shall not be implemented.”
To Read the full text of the Order CLICK HERE
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