CESTAT Directs to decide Services Tax Appeal Filed with due Compliance of Pre Deposit [Read Order]

The Allahabad bench of the Customs, Excise & Service TaxAppellate Tribunal (CESTAT) has held that since the impugned order do not considers the appeal filed by the appellant on merits, no decision has been rendered on merits by Commissioner (Appeals), the tribunal remanded the matter back to the Commissioner (Appeals) for decision on merits.

Royal Construction and Mining Works, the appellant challenged the Order-in-Appeal passed by Commissioner (Appeals) Central Goods & Services Tax, Allahabad. By the impugned order Commissioner (Appeals) has rejected the appeal of the appellant by observing “ since the instant appeals have been filed on 25.05.2023, after 06.08.2014, 1.е., the date from which the amended Section 35F of the Act came into effect, without complying with the statutory requirement of predeposit, when the Commissioner (Appeals) had no jurisdiction to entertain or admit the appeals, I, therefore, find that this appeal is not maintainable in terms of Section 35F of the Act and in the light of the aforementioned judicial pronouncements.”

It is evident that Commissioner (Appeals) has dismissed the appeal of the appellant only for want of mandatory pre-deposit. The Appellant has requested for adjournment. I have heard Shri Santosh Kumar learned Authorized Representative appearing for the revenue.

Arguing for the revenue learned Authorised Representative submits that appellant have now complied with the conditions of mandatory pre-deposit i.e. 10% of the disputed amount, as required in terms of Section 35 of the Central Excise Act,1944 for consideration of appeal by the Tribunal.

A single bench of Sanjiv Srivastava, Member (Technical) considered the impugned order along with the submissions made in appeal and during the course of argument. Taking the note of the above fact that the impugned order has not passed on merits of the case, the matter needs to be remanded for reconsideration by Commissioner (Appeals) as the appellant has deposited the entire amount required to be deposited as mandatory pre-deposit for consideration of the appeal by this Tribunal i.e. 10% of the disputed amount as prescribed by Section 35F of the Central Excise Act, 1944.

Since the impugned order do not considers the appeal filed by the appellant on merits, no decision has been rendered on merits by Commissioner (Appeals), the tribunal remanded the matter back to the Commissioner (Appeals) for decision on merits.

It was held that appellant shall not withdraw any part of the pre-deposited amount or make a claim for any refund of this amount till the disposal of the appeal by the Commissioner (Appeal) in remand proceedings. The Appeal is allowed and matter is remanded back to Commissioner (Appeal) for denovo consideration.

Further held that since the appeal has been quite old, Commissioner (Appeal) is directed to decide the appeal on merits of the case by following the principles of natural justice within three months.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates