Regarding consideration of refundable amount as pre deposit of CESTAT Appeal

[Shaubhik Gupta]

In an appeal to be filed before Hon'ble CESTAT, assessee wants to understand that if assessee has a refundable amount of Service Tax originating from favorable order of Commr. Appeals, can that amount be submitted as a pre-deposit of disputed service tax amount for the purpose of CESTAT appeal for complying with requirement of pre-depsoit of appeal. As a matter of fact, the favorable order from Commr. Appeals and current CESTAT appeal are originating from the same Show Cause Notice, adjudicated vide a single OIO, where one set of demands is dropped by Adjudicating Authority and confirming one demand. Now the demand dropped were reviewed and appealed against by revenue, subsequently allowed in revenues favour by Commr. Appeals, while the other demand confirmed by adjudicating authority is challenged by assessee, after depositing the pre-deposit required for filing first appeal. This appeal is allowed by Commr. Appeals in assessee's favour and pre-deposit is now refundable. The other set of demand confirmed by Commr. Appeals in revenues favour is being challenges by assessee now. Now whether the assessed can consider the amount already deposited and which is now refundable to be considered as pre-deposit for CESTAT appeal compliance purpose. If it can be considered, then should assessee submit a letter or mention this fact in the appeal along with enclosing the challan of pre-deposit and favorable order from Commr. Appeals.

AI Summary

Can a Refundable Service Tax Pre-Deposit Be Used for CESTAT Appeal? Explore Case Law for Guidance. An assessee inquires whether a refundable Service Tax amount, resulting from a favorable Commissioner Appeals order, can be used as a pre-deposit for a CESTAT appeal. Both the favorable order and the current appeal stem from the same Show Cause Notice and Order-in-Original. One demand was dropped and later appealed by the revenue, while another was confirmed and is now challenged by the assessee. The refundable pre-deposit from the first appeal is in question for use in the CESTAT appeal. A respondent suggests that based on a similar case, the pre-deposit should be adjustable and advises referencing the case law for support.