M/S Shiv Shakti Mandir Sanchalan Samiti vs. Commissioner Of Central Goods And Services Tax & Ors.
Held
The Court modified the CESTAT's direction for pre-deposit. It held that the petitioner should deposit 7.5% of the amount claimed as demand towards interest liability, as confirmed by the Commissioner (Appeals), within four weeks. Upon compliance, the CESTAT would be required to hear the appeal on its merits. The Court set aside the CESTAT's order dated 13.07.2015, which had dismissed the appeal for non-compliance with the earlier pre-deposit requirement. The CESTAT was directed to verify the pre-deposit and then proceed with hearing the appeal. The Court explicitly reserved all rights and contentions of the parties. No specific issue was left undecided.
Facts
The petitioner, M/s Shiv Shakti Mandir Sanchelan Samiti, filed a writ petition challenging a direction from the CESTAT requiring a pre-deposit of 10% of the interest amount due, which amounted to over ₹14 lakhs. The record indicates that the principal liability of ₹13.57 lakhs had already been discharged at the show-cause notice stage, as Indraprastha Gas Limited had paid this amount to the petitioner. The CESTAT's order had dismissed the petitioner's appeal for non-compliance with a previous pre-deposit order.
Key Issues
1. Whether the CESTAT's direction for pre-deposit of 10% of the interest amount, which exceeded ₹14 lakhs, was justified, considering the principal liability had already been discharged. Petitioner's contention: The petitioner argued that the pre-deposit amount demanded by the CESTAT was excessive and disproportionate, especially since the principal tax liability had been settled. They sought modification of the pre-deposit requirement. Respondents' contention: The respondents, including the Commissioner of Central Goods and Services Tax and others, likely argued for upholding the CESTAT's order, emphasizing the necessity of pre-deposit for the appeal to be heard on merits. Specific arguments from the respondents are not detailed in the provided text.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2018
We have heard counsel for the parties.
The present petition challenges the direction of the CESTAT which required pre-deposit of 10% of the interest amount due which works out to over `14 lakhs. The record would disclose that at the stage of show-cause notice the principal liability (`13.57 lakhs odd) was discharged, since the concerned agency i.e. Indraprastha Gas Limited paid the amount to the petitioner. W.P.(C) 4798/2018
Having heard counsel for the parties and after taking into account all the ci
The judgment continues below.
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