Appellant withdraws appeal after successful challenge to tax demand quantification.

The appellant filed an appeal challenging an Order-in-Appeal passed by the Ld. Commissioner (Appeals) regarding the quantification of demand. After subsequent litigation rounds, the demand was reduced to Rs. 4,34,108/-, and the appellant deposited the amount. The appellant then sought to withdraw the appeal as it had become infructuous, which was granted, leading to the dismissal of the appeal.

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Issues: Application for withdrawal of appeal challenging Order-in-Appeal dated 28.07.2016 passed by Ld. Commissioner (Appeals) on grounds of remand and quantification of demand.

Analysis:

1. The appellant had filed an appeal challenging the Order-in-Appeal dated 28.07.2016 passed by the Ld. Commissioner (Appeals). The appellant contended that the Ld. Commissioner (Appeal) remanded the matter to the adjudicating authority for re-quantification of demand without considering their contention that part of the demand was covered by previous Show Cause Notices and part of it had already been paid by them. The appellant further mentioned that the Hon'ble CESTAT had previously held that since there was no quantification of duty and penalty amount and the matter was remanded to the adjudicating authority, the stay petition was rejected. The adjudicating authority, complying with the remand direction, upheld the demand, leading the appellant to file an appeal before the Ld. Commissioner (Appeal) who, in the second round of litigation, reduced the demand to Rs. 4,34,108/- along with interest and equivalent penalty under Section 78 of the Act. The Ld. Commissioner (Appeal) also appropriated the amount of Rs. 2,00,900/- deposited by the Appellant against the said demand.

2. The appellant accepted the Order-in-Appeal dated 28.07.2016 passed by the Ld. Commissioner (Appeal) and deposited the service tax, interest, and penalty accordingly. Consequently, the appellant submitted that the appeal filed before the Hon'ble Tribunal had become infructuous and requested permission to withdraw the appeal. Following the submissions made by the appellant, the appeal was dismissed as withdrawn.

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