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Payment of appeal fee by exempted unit

04 May 2018

APMC a local Authority is working under the exemption limit of Rs.10/- Lakhs. Though turnover was less than Rs.10/- Lakhs, OIO passed, confirming Demand of Service Tax, interest and Penalty. For the purpose of filing an Appeal, APMC needs to pay appeal fee 7.5 % of demand. If APMC does not have registration at all, how APMC would pay Appeal fee ?

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AMIT KAPOOR (SELF EMPLOYED) (491 Points)
Replied 07 May 2018

Mandatory Pre-Deposit : It is requirement of 35F of the Central Excise Act, 1944 to deposit mandatory “Pre-Deposit” along with appeal. Therefore, following pre deposit needs to be deposited and proof thereof need to be annexed with the appeal:

a) If OIO is against demand of service tax, interest and penalty : 7.5% of service tax portion only

b) If OIO is against demand of penalty only but not of service tax : 7.5% of penalty portion

The above pre-deposit can be paid either by paying service tax challan through online banking or after doing reversal of available cenvat credit balance in books and necessary proof need to be attached along with appeal.