Service Tax
TRT-2025-
Cestat Allahabad
Date:-03-06-24
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 03 June 2024
Parties: M/s Shri Krishna Road Carrier Vs Commissioner of Central Excise & CGST, Meerut
Facts –
- The Appellant, M/s Shri Krishna Road Carrier, deposited pre-deposit and submitted copy of DRC-03. The appeal was rejected for failure to make mandatory pre-deposit in terms of Section 35F of the Central Excise Act, 1944.
Issue –
- Whether appeal can be rejected on the ground that it has not been deposited in the prescribed manner?
Order –
- The Tribunal observed that dismissing the appeal filed by the Appellant, even after making the pre-deposit, merely on the ground that it has not been deposited in the prescribed manner or by the prescribed Form, amounts to denial of substantial justice and the Commissioner (Appeals) has erred in shirking from its responsibility of deciding the appeal on merits.
- CBIC has issued another Circular/Instruction dated 18.04.2023, by which it has clarified the earlier Instruction dated 28.10.2022. It has been provided that DRC-03 is a prescribed mode for payment of pre-deposit under the GST Act.
- Thus, when the service tax could be recovered as an arrear of Service Tax under CGST Act, after commencement of the CGST Act, then pre-deposit made through DRC-03 prior to 28.10.22 has to be treated as sufficient compliance, in view of the subsequent Instruction dated 18.4.23. The appeal filed by the Appellant is allowed by way of remand to the Commissioner (Appeals).
Download Case Law
