2008 (2) TMI 79 - AT - Service Tax

CESTAT grants full pre-deposit waiver in service tax appeal due to Commissioner's error

The Appellate Tribunal CESTAT, New Delhi granted total waiver of pre-deposit in an appeal related to service tax for the period of March to September '04. ... Waiver of pre-deposit requirement - Exercise of suo motu revisional power - Levy of service tax where tax has already been paid by the principalWaiver of pre-deposit requirement - Total waiver of the requirement of pre-deposit granted in respect of the appeal. - HELD THAT: - The Tribunal, having considered the facts and submissions, held that the case is fit for a complete waiver of the pre-deposit ordinarily mandated for prosecution of the appeal. The order records the appellant's contention that the impugned order emanated from exercise of suo motu revisional power under Section 84 of the Finance Act, 1994 pursuant to a show cause notice issued under a provision alleged to be non-existent at the relevant time, and the contention that service tax was being sought on amounts on which the principal had already discharged tax. On the stated facts and circumstances the Tribunal was satisfied that pre-deposit should be waived and accordingly ordered a total waiver.Total waiver of the pre-deposit requirement granted.Final Conclusion: The Tribunal granted a complete waiver of the pre-deposit for the appeal relating to March to September '04, allowing the appeal to proceed without the pre-deposit. The Appellate Tribunal CESTAT, New Delhi granted total waiver of pre-deposit in an appeal related to service tax for the period of March to September '04. The impugned order was passed by the Commissioner using a non-existent provision, and the appellant argued that service tax was already paid by the principal, Maruti Finance. The waiver of pre-deposit was ordered by Justice S. N. Jha, President.