2014 (5) TMI 92

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....e interim directions issued by the Tribunal earlier on 17 September 2013 requiring the appellant to deposit Rs.1,14,77,883/- together with corresponding interest under Section 75 of the Finance Act, 1994. Though, a number of substantial questions of law have been framed, the following question would cover the controversy: "(i) Whether the Tribunal was justified in demanding the entire adjudicated amount along with interest & penalty in compliance of Section 35F of the Central Excise Act 1944?" The appellant is registered under Section 69 of the Finance Act, 1994 with the Excise Department for providing telephone service. A demand cum show-cause notice dated 10 October 2007 was issued by the Commissioner, Central Excise, Allahabad. It was ....

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....One crore fourteen lacs seventy seven thousand eight hundred eighty three only) on the said party under Section 78 of the Act." The appellant preferred an appeal under Section 86 with a stay cum waiver application before the Tribunal. The Tribunal by a detailed order dated 17 September 2013 disposed of the application for stay/waiver of pre-deposit of the amount assessed in the adjudication order dated 14 February 2008 with the following observations: "3. Though the learned counsel for the petitioner argued that liability was assessed not on the basis of actual value received for the taxable services provided but on taking into account amounts which are receivable, on a careful scrutiny of the adjudication order we find that no clear bas....

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....e error in the adjudication order with regard to determination of the quantum of the liability, considerable responsibility for such possible error is attributable to the assessee. However, duly considering the fact that the assessee is an instrumentality of the State, we grant waiver of pre-deposit and stay all further proceedings for recovery of the adjudicated liability as set out in the impugned order, on condition that the petitioner remits Rs.1,14,77,883/- plus the corresponding interest on this amount under Section 75 of the Act, within 8 weeks from today and reports compliance by 18.11.2013. In default of either deposit or in reporting compliance within the time stipulated herein, the order of waiver shall stand rescinded and the ap....

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....n instrumentality of the State, the Tribunal directed that further proceedings for recovery of the adjudicated liability shall remain stayed provided the appellant deposits an amount of Rs.1,14,77,883/- together with corresponding interest under Section 75 of the Finance Act within eight weeks and report compliance by 18 November 2013. We have considered the submissions advanced by learned counsel for the appellant. They basically relate to the merits of the appeal and have been considered by the Appellate Tribunal while disposing of the stay/waiver application filed by the appellant before the Tribunal. We do not wish to express any opinion at this stage as all these contentions will be examined by the Tribunal when it proceeds to decide ....