Pre-deposit dispute settled in favour of merits-based hearing; further deposit not required and matter remanded.

An appeal dismissed by the Commissioner (Appeals) for non-compliance with a pre-deposit direction was held fit for reconsideration on merits where the appellant had already deposited service tax relatable to the service charges and the dispute was found to be contentious. In these circumstances, further pre-deposit was treated as unnecessary, and the matter was remanded for decision on the substantive issues without insisting on any additional deposit.

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Issues: Whether the appeal, dismissed by the Commissioner (Appeals) for non-compliance with the pre-deposit direction, should be remanded for decision on merits without insisting on further pre-deposit.

Analysis: The appellant had already deposited the amount of service tax relatable to service charges, and the dispute was considered to be of a contentious nature. In these circumstances, insistence on further pre-deposit was not warranted, and the appeal required consideration on merits.

Conclusion: The impugned order was set aside and the matter was remanded to the Commissioner (Appeals) to decide the appeal on merits without insisting on any further pre-deposit.

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