2025 (7) TMI 1340

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....er alia, assailing the order dated 27th September, 2024 passed by the Customs, Excise & Service Tax Appellate Tribunal (hereinafter, 'CESTAT') as also the subsequent miscellaneous order bearing no. 50484/2024 dated 15th May, 2025. 3. The brief background of the case is that the Central Goods and Service Tax (hereinafter, 'CGST') Department had issued a Show Cause Notice (hereinafter, 'SCN') on 7th March, 2008 seeking to raise certain demands against the Petitioner. A further SCN also came to be issued on 28th November 2008. The details of the SCNs are set out below : - S.No SCN No. & Date Period Involved. 1. C.No. DL/ST/AE/Inquiry/MCM/Gr.IV09/05/5945 dated 07.03.2008 issued by the Commissioner of Service Tax, New Delhi ....

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....AT had raised a defect for non-payment of the entire pre-deposit amount in terms of Section 35F of the Central Excise Act, 1944. 7. Vide order dated 27th September, 2024, CESTAT directed the Petitioner to deposit a sum of Rs. 17,21,477/-. A rectification application was filed by the Petitioner before CESTAT seeking rectification of the earlier order which was also rejected vide the order dated 15th May, 2025. Thus, both the orders dated 27th September, 2024 and 15th May, 2025 are under challenge in this petition. 8. The contention of ld. Counsel for Petitioner is that a substantial portion of the service tax amounts have already been deposited and the same would deserve to be given credit for, at the stage of pre-deposit. In his submi....

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....ounts whereas the total demand was for the entire amount of service tax. The stand of the Petitioner is clear that composite works contracts are not liable for service tax and therefore, it is entitled to refund of even the amount which has already been paid. The Department's case is obviously to the contrary. 12. This Court at this stage would not like to go into the question as to whether the liability exists on the Petitioner to pay service tax or not. The only thing that this Court has to consider is whether there is a shortage in the pre-deposit and whether any waiver can be granted. The amounts which are in dispute are as under : - SCN Gross Tax Demand Deposited Short paid SCN dated 07.03.2008 (Para 44.6 of Order in-....

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....ise discretion to waive requirement of pre-deposit of penalty in rare and deserving cases. The relevant portion of the said decision reads as under: "19. The principle enunciated in the judgments of Pioneer Corporation case (supra), Narender Yadav case (supra), Shubh Impex case (supra), Manoj Jha case (supra) and Ganesh Yadav case (supra) is that the Court has the power to exercise discretion to waive requirement of pre-deposit of penalty in "rare and deserving cases" where a clear justification is made out for interference. In Narendra Yadav case (supra), this Court had found that the Order-in-Original did not give any reasons for the penalty imposed on the Petitioners and hence was unwarranted. In Shubh Impex case (supra), the Co....