PRE DEPOSIT

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Discussion on mandatory pre-deposit requirements under Service Tax law for filing appeals. Experts clarified that 7.5% is payable for the first appeal and an additional 2.5% for the second appeal, generally calculated on disputed tax/duty amounts, without waiver on humanitarian grounds.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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12 February 2026 HOW MUCH PRE- DEPOSIT TO BE PAID UNDER SERVICE ACT, ON WHICH ELEMENT I.E., TAX + INTEREST + PENALTY AND ON THE BASIS OF HUMANITY GROUND DEMAND CAN BE WAIVED?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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12 February 2026 Under Service Tax law:

Pre-deposit = 7.5% (first appeal) or 10% (second appeal)

Calculated only on tax amount (not interest or penalty)

Mandatory and cannot be waived on humanitarian grounds

Radhakrishnan K.V.

Radhakrishnan K.V. (Expert)
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05 April 2026 7.5% with 1st appeal and remaining 2.5% with 2nd appeal. Where duty and penalty are in dispute the pre-deposit is to be computed on the disputed amount. vide Circular F. No. 01/05/Circular/CESTAT/2015-CR dated 05/07/2018.

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