Mandatory pre-deposit for service tax appeals bars maintainability where the statutory deposit requirement is not complied with.

Section 83 of the Finance Act, 1994 applies section 35F of the Central Excise Act to service tax appeals, so the amended pre-deposit requirement is a mandatory condition for entertainment of the appeal. After the 06.08.2014 amendment, the prescribed percentage must be deposited before the appellate forum can proceed, and neither the Tribunal nor the Commissioner (Appeals) has power to waive or reduce that requirement. Non-compliance with this statutory condition precedent renders the appeal not maintainable and liable to dismissal.

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Issues: Whether the appeal under the service tax regime was maintainable without complying with the mandatory pre-deposit requirement.

Analysis: Section 83 of the Finance Act, 1994 makes section 35F of the Central Excise Act applicable to service tax matters. After the 06.08.2014 amendment, section 35F requires deposit of the prescribed percentage before an appeal can be entertained and does not confer any power on the Tribunal or the Commissioner (Appeals) to waive or reduce that requirement. The Tribunal relied on the settled position that a statutory right of appeal can be subjected to mandatory conditions, and that non-compliance with a condition precedent prevents entertainment of the appeal. The cited authorities consistently hold that the appellate forum cannot bypass the statutory mandate of pre-deposit.

Conclusion: The appeal was not maintainable without the required pre-deposit and was liable to be dismissed.

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