Tribunal Grants Waiver of Pre-Deposit in Service Tax Appeal

The Tribunal granted the application for waiver of pre-deposit of service tax amount pending appeal, with the appellant, a cement manufacturer, required to make an initial payment of Rs. 5 lakhs within six weeks. Further pre-deposit was waived upon compliance, and recovery was stayed pending appeal disposal. The decision balanced interests by allowing the appeal to proceed without immediate full pre-deposit but ensuring a reasonable amount was deposited.

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Issues:
Grant of waiver of pre-deposit of service tax amount pending appeal.

Analysis:
The judgment pertains to an application filed by an appellant, a cement manufacturer, seeking waiver of pre-deposit of service tax amount pending the disposal of the appeal. The appellant, engaged in the manufacture of cement and clinker, faced a show cause notice alleging irregular availment of Cenvat credit on service tax paid for various "input services." The demands were confirmed, including proposed penalties, leading to the appeal.

During the hearing, the appellant's advocate referenced a previous Tribunal order in a similar case where 25% pre-deposit was ordered. In contrast, the respondent's representative argued for full pre-deposit in cases involving small amounts and 25% pre-deposit for larger amounts. After considering the submissions, the Tribunal directed the appellant to make a pre-deposit of Rs. 5 lakhs within six weeks. Upon compliance by the specified date, further pre-deposit was waived, and the recovery thereof was stayed pending the appeal's disposal.

In conclusion, the Tribunal granted the application for waiver of pre-deposit, subject to the appellant making an initial payment of Rs. 5 lakhs within the specified timeline. The judgment balanced the interests of both parties by allowing the appeal to proceed without immediate full pre-deposit while ensuring a reasonable amount was deposited to secure the appeal process.

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