Cestat order - interpretation

Queries 366 views 2 replies

Donbosco

Others

33 Points Joined April 2015

CESTAT passes a miscellenous order on the appeal to waive the service tax, as follows:

The applicant filed an application for waiver of predeposit of service tax of Rs.xx,xx,xxx- along with interest and penalty.

In view of that the applicant failed to make out a strong prima facie case for waiver of predeposit of the entire dues. Accordingly, we direct the applicant to predeposit an amount of Rs.yy,yy,yyy within a period of eight weeks. Upon such deposit, predeposit of the balance tax along with interest and penalty stands waived and recovery thereof stayed during the pendency of the appeal.

What does the last line mean? If I pay yy,yy,yyy will the case be closed by waiving the balance, penalty and interest or should I pay this money as predeposit and to proceed with the case for final order?

The preposit asked to deposit is 50% of entire due.

Between, what does it mean as LOD application.

Thanks.

Replies (2)

Rakshit

practising

338 Points Joined November 2011

The order passed by the CESTAT is with regard to Pre-deposit under Section 35F of the Central excise Act,1944 as made applicable to Section 83 of the finance Act,1994. The provison are that either you deposit full demand confirmed or deposit a amount fixed by the CESTAT for granting Stay order, failing which appeal may be dismissed. If you deposit the orderd amount, the balance will remain stayed till the disposal of case..

R C Verma, Advocate,

09810525780 / 0888 281 281 8

Manoj Agarwal

Service Tax Consultant Rourkela Service

3456 Points Joined March 2012

It simply means that your PRE-DEPOSIT has been reduced to 50%. So, earlier if you were required to pay Rs. 100, the Tribunal has given you temporary relief to pay only Rs. 50 and the balance tax is STAYED and will not be recoved by the department TILL the disposal of the appeal. It doen't mean that the demand of balance amount has been waived.