MUKAND LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) HEARD both sides. The applicants filed this application for admission of appeal and for waiver of pre -deposit of interest amounting to Rs. 37,497/ -. It is brought to my notice that since the amount involved in this case is less than Rs. 50,000/ -, this Tribunal at their discretion can refuse to admit the appeal as per the provisions of Section 35B of the Central Excise Act.

(2.) THE contention of the learned Counsel appearing for the applicant is that they have already challenged denial of refund of Service Tax erroneously paid by them on "Garden maintenance service" and "insurance services" on account of an audit objection. The contention is that since the amount of Cenvat credit itself is under challenge, the interest is not chargeable at this stage.

(3.) I find that the appeal filed against denial of refund of Service Tax paid on 'gardening services' and 'insurance services' is pending before this Tribunal. The interest will be payable only if it is held that Service Tax is payable on these services and the same is yet to be decided. In these circumstances, I find prima facie case for complete waiver of pre -deposit of interest in favour of the applicant. The pre -deposit of interest is waived and its recovery is stayed during pendency of the appeal. The miscellaneous application and stay petition are allowed.