SANTHOSH KUMAR K Vs. COMMISSIONER

JUDGEMENT

(1.) Petitioner seeks relief from the burden of making a pre-deposit under Sec. 86 of the Finance Act, 1994 ('for short 'the Act') for preferring the appeal before the Central Excise and Service Tax Appellate Tribunal (CESTAT).

(2.) Petitioner is a proprietor of an establishment by name M/s. Swathi Constructions at Shoranur and is engaged in laying of power lines on behalf of persons, who had executed contracts with the Power Grid Corporation of India.

(3.) According to the petitioner, it had executed job works during various financial years and that all records and details were submitted to the jurisdictional officers under the Goods and Service Tax Act, 2017 as well as the Central Excise Act 1944. He further contended that after the coming into force of the CGST Act, an order was issued on 13/5/2019 levying penalty and service tax upon the petitioner under five different heads, imposing a huge liability upon the petitioner. Though the imposition of liability of service tax and penalty upon the petitioner was impermissible in the circumstances of the case, petitioner challenged the order of the Adjudicating Authority before the CESTAT. As per the provisions of Sec. 86 of the Finance Act, 1994 r/w Sec. 35F of the Central Excise Act, 1944, petitioner was bound to pay as pre-deposit an amount equivalent to 7.5% of the quantum of tax under dispute. It is contended that the pre-deposit payable as contemplated under law, in the instant case was Rs.18,06,057.00 and that with all bonafides, petitioner deposited an amount of Rs.12,50,000.00leaving Rs.5,56,057.00 as balance unpaid towards the pre-deposit. Since the petitioner found it financially impossible to make the balance of the mandatory pre-deposit, he has approached this Court seeking relief from such a pre-deposit. It is contended that the huge quantum of pre-deposit due from the petitioner is too onerous and makes it practically impossible for the petitioner to pursue its statutory remedy.