Service Tax : Where overall financial position of assessee, as reflected in Profit and Loss Account, showed erosion of profitability, High Court reduced amount of pre-deposit directed to be made by Tribunal
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[2014] 51 taxmann.com 562 (Madras)
HIGH COURT OF MADRAS
Suprasesh General Insurance Services & Brokers (P.) Ltd.
v.
Commissioner of Service Tax, Chennai*
M. JAICHANDREN AND MRS. ARUNA JAGADEESAN, JJ.
C.M.A. NO. 2930 OF 2014†
OCTOBER 13, 2014
Section 35F, of the Central Excise Act, 1944, read with section 83, of the Finance Act, 1994 and section 129E of the Customs Act, 1962 - Appeals - Deposit, pending appeal, of duty/tax demanded or penalty levied - Out of total demand of Rs. 108 lakh with interest, Tribunal ordered pre-deposit of Rs. 50 lakh, for entertaining Appeal - Assessee argued that it is facing undue financial hardship and said ground had been raised in stay application but Tribunal has not considered said ground - HELD : Assessee had pleaded financial difficulties and it had stated that overall financial position of company, which is reflected in Profit and Loss Account, shows erosion of profitability, and, as such, assessee is undergoing financial hardship - If assessee is directed to make pre-deposit of Rs. 50 lakh, as directed by Tribunal, it would cause undue hardship to assessee and it would defeat its right to file an appeal - Since assessee offered to make pre-deposit of Rs. 30 lakh, pre-deposit was reduced to Rs. 30 lakh [Paras 6 to 8] [Partly in favour of assessee]
■■■
[2014] 51 taxmann.com 562 (Madras)
HIGH COURT OF MADRAS
Suprasesh General Insurance Services & Brokers (P.) Ltd.
v.
Commissioner of Service Tax, Chennai*
M. JAICHANDREN AND MRS. ARUNA JAGADEESAN, JJ.
C.M.A. NO. 2930 OF 2014†
OCTOBER 13, 2014
Section 35F, of the Central Excise Act, 1944, read with section 83, of the Finance Act, 1994 and section 129E of the Customs Act, 1962 - Appeals - Deposit, pending appeal, of duty/tax demanded or penalty levied - Out of total demand of Rs. 108 lakh with interest, Tribunal ordered pre-deposit of Rs. 50 lakh, for entertaining Appeal - Assessee argued that it is facing undue financial hardship and said ground had been raised in stay application but Tribunal has not considered said ground - HELD : Assessee had pleaded financial difficulties and it had stated that overall financial position of company, which is reflected in Profit and Loss Account, shows erosion of profitability, and, as such, assessee is undergoing financial hardship - If assessee is directed to make pre-deposit of Rs. 50 lakh, as directed by Tribunal, it would cause undue hardship to assessee and it would defeat its right to file an appeal - Since assessee offered to make pre-deposit of Rs. 30 lakh, pre-deposit was reduced to Rs. 30 lakh [Paras 6 to 8] [Partly in favour of assessee]
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