Santhosh Kumar K vs. The Commissioner
Held
The High Court held that the 2014 amendment to Section 35F of the Central Excise Act, read with Section 86 of the Finance Act, 1994, made the pre-deposit for appeals mandatory. The Court concluded that it has no discretion to waive the pre-deposit, even on grounds of financial hardship, as doing so would contravene legislative intent.
Facts
The petitioner, engaged in laying power lines, was levied service tax and penalty, which he challenged before the CESTAT. He sought a waiver of the balance mandatory pre-deposit of Rs. 5,56,057/- required for the appeal, citing financial hardship and impossibility to pay.
Key Issues
Can the High Court waive the mandatory pre-deposit for an appeal before the CESTAT under Section 86 of the Finance Act, 1994 read with Section 35F of the Central Excise Act, 1944, on grounds of financial hardship, after the 2014 amendment?
Sections Cited
Section 86 of the Finance Act, 1994, Section 35F of the Central Excise Act, 1944
AI-generated summary — verify with the full judgment below
WP(C) NO. 25453 OF 2021 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 24TH DAY OF MARCH 2022 / 3RD CHAITHRA, 1944 WP(C) NO. 25453 OF 2021 PETITIONER/S: SANTHOSH KUMAR K AGED 53 YEARS PROPRIETOR, M/S.SWATHI CONSTRUCTIONS, RAYIRANKANDATH HOUSE, KOONATHARA, SHORNUR-679523. BY ADVS. T.M.SREEDHARAN (SR.) NISHA JOHN V.P.NARAYANAN RESPONDENT/S: 1 THE COMMISSIONER CENTRAL GST AND CENTRAL EXCISE, C.R.BUILDING, MANANCHIRA, KOZHIKODE-673001. 2 THE CHIEF COMMISSIONER OF CENTRAL TAX AND CENTRAL EXCISE, THIRUVANANTHAPURAM ZONE, COCHIN-682018. 3 CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, SOUTHERN BENCH, 1ST FLOOR, WTC BUILDING, FKCCI COMPLEX, K.G.ROAD, BANGALORE-560009. BY ADV SREELAL WARRIER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.03.2022, THE COURT ON 24.03.2022 DELIVERED THE FOLLOWING:
WP(C) NO. 25453 OF 2021 2 BECHU KURIAN THOMAS, J. ======================== W.P.(C)No.25453 of 2021 ------------------------------------------------ Dated this the 24th day of March, 2022 JUDGMENT Petitioner seeks relief from the burden of making a pre- deposit under Section 86 of the Finance Act, 1994 (‘for
The judgment continues below.
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