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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, BANGALORE
P.G. CHACKO, J.
Kumar’s Metallurgical Corpn. Ltd. -Appellant
Versus
Commissioner of Customs, Central Excise & Service Tax, Hyderabad -Respondent
Final Order NO. 25006 OF 2013 Application NO. ST/STAY/1706 OF 2012 Appeal No. ST/2341 OF 2012, 25006 of 2013, ST/2341 of 2012, ST/STAY/1706 of 2012
Decided On : 11-01-2013
R. Muralidhar,N. Jagdish
1. After hearing both sides, I have found the appeal itself fit for final disposal. Accordingly after dispensing with pre-deposit, I take up the appeal. In adjudication of a show-cause notice, the original authority had confirmed demand of Rs.4,96,772/- towards service tax and education cesses against the assessee. It also demanded interest thereon. It also imposed penalties on the assessee. In an appeal filed against the Order-In-Original, the Commissioner(Appeals) required the assessee to pre-deposit 50% of Rs.4,96,772/-, which they could not deposit. Consequently, their appeal came to be dismissed on the sole ground of non-compliance with Section 35F of the Central Excise Act. The present appeal is directed against the appellate Commissioner's order.
2. The learned counsel for the appellant submits that they had severe financial difficulties and hence could not predeposit the amount required by the lower appellate authority. They could not even make any payment from their CENVAT account which remained frozen under Rule 8(3A) of the Central Excise Rules, 2002 at the material time. The learned counsel submits that the CENVAT account has since been defrozened and hence they are in a position to utilize CENVAT credit for pre-depositing the amount required by the lower appellate authority. I have heard the learned Superintendent(AR) also.
3. In the aforesaid circumstances, I set aside the impugned order and allow this appeal by way of remand requesting the Commissioner (Appeals) to take up the assessee's appeal (filed against Order-In-Original) for disposal on merits subject to pre-deposit of 50% of the amount of service tax and education cesses by the assessee and report of compliance. The appellant shall be at liberty to use CENVAT credit for this purpose. They shall make the pre-deposit within 30 days from today and report compliance to the Commissioner(Appeals) forthwith.
4. The stay application also stands disposed of.
