2024 (12) TMI 223 - HC - Service Tax

Court Validates E-Cash Ledger Pre-Deposits, Orders Fast-Tracked Appeal Process for Finance Act Cases.

M/s In Net India Pvt. Ltd., Chembond Chemicals Limited Versus Union of India, The Commissioner of Central Tax & Central Excise, Raigarh (Appeals) Navi Mumbai, Joint Commissioner, CGST and Central Excise, Navi Mumbai.

The High Court of Bombay determined that pre-deposits made through the electronic cash ledger under the Finance Act, 1994, are valid. Consequently, the ... Validity of pre-deposits made by the petitioners through their electronic cash ledger - Section 83 of the Finance Act, 1994, read with Section 35 of the Central Excise Act, 1944 - HELD THAT:- The issue raised in these petitions is covered by the decision of the Coordinate Bench in RELIANCE INFRASTRUCTURE LIMITED VERSUS THE UNION OF INDIA AND ORS. [2022 (8) TMI 1053 - BOMBAY HIGH COURT]. Ultimately, the record shows that the petitioners made pre-deposits, whether in one form or another. Accepting the respondents’ hyper-technical contention would only mean that the respondents would have to be directed to refund the amount of pre-deposits made by the petitioners so that the petitioners could once again deposit the same amount to the appeal account. The appellate authority are directed to accept the pre-deposits made as valid pre-deposits and dispose of the petitioners’ appeal on the merits and in accordance with the law - petition allowed. The High Court of Bombay heard two petitions regarding the validity of pre-deposits made through electronic cash ledger under the Finance Act, 1994. The court found that the pre-deposits were valid, quashed the appeal orders, and remanded the matter to the appellate authority for further action. The decision was based on a previous case and the court directed the authority to handle the appeals promptly.