CESTAT Waives excess amount more than 10 % deposited u/s 35 F of Excise Act [Read Order]
For the purpose of Section 35F, the amount already deposited by the appellants would suffice.
CESTAT - excise - act - TAxscan
CESTAT - excise - act - TAxscan
The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) waived the excess amount more than 10 % deposited under section 35 F of the Excise Act, 1944.
Swaran Talkies Hoshiarpur Pvt. Ltd, the appeal is filed against the order dated 09.12.2015 passed by the Commissioner (Appeals) whereby the Commissioner (Appeals) has directed the party to deposit Rs.12 Lakhs as a predeposit for hearing the case on merits.
Counsel for the appellant submitted that they have deposited Rs.2,40,000/- which is equal to 10% of the duty demanded. He further submitted that the matter pertains to 05.08.2014 and the appellants have deposited Rs.2,40,000/- vide challan dated 09.12.2015; however, the Commissioner (Appeals), vide order dated 09.12.2015, dismissed the appeal for noncompliance of the order dated 01-10/10/2014.
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He further submitted that the case being for the period prior to 05.08.2014, Tribunal may hold that the amount already paid by them to be sufficient for the purpose of Section 35F and to direct the Commissioner (Appeals) to hear the case on merits.
Before submitting an appeal to the Commissioner (Appeals) or the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), a pre-deposit of a specific percentage of the tax demanded or penalty levied is required, as per Section 35F of the Central Excise Act, 1944. When an appeal is submitted to the CESTAT against the Commissioner's (Appeals) ruling or order, 10% is applied.
A two member bench of S. S. Garg, Member (Judicial) and P. Anjani Kumar, Member (Technical) viewed that there is no dispute as regards the period which the appeal belongs to. For the purpose of Section 35F, the amount already deposited by the appellants would suffice.
The Tribunal allowed the appeal and remanded the case to the Commissioner (Appeals) for a decision on merits. Accordingly,the CESTAT waived off the deposit as directed by the Commissioner (Appeals), as in excess of the Rs.2,40,000/- deposited by the appellants, which is also otherwise sufficient for the purpose of Section 35F.
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