M/S. KUNVARJI FINSTOCK PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THIS Stay Petition is filed for waiver of pre -deposit of Service Tax of Rs. 8,02,046/ -, interest thereof and penalties under Sections 76 & 78 of Finance Act, 1994. The above said amounts have been confirmed by adjudicating authority as Service Tax liability on the appellant as stock broker services for non -inclusion of reimbursable charges collected by them from their clients.

(2.) AFTER hearing both sides for some time on the Stay Petition, we find that the appeal itself could be disposed of as the issue involved in this case lies in narrow compass. Accordingly, the application for waiver of pre -deposit of amounts involved is allowed and the appeal itself is taken up for disposal.

(3.) ON perusal of the records, we find that the first appellate authority has dismissed the appeal filed by the appellant only for non -compliance of the pre -deposit ordered by him. At this juncture, we find strong force in the contentions raised by the ld. Counsel that the issue of inclusion of reimbursable charges under the provisions of Rule 5(1) of Service Tax Valuation Rules have been struck down by Hon'ble High Court of Delhi as ultra vires. We are unable to go into the merits of the case as the first appellate authority has not gone into merits of the case. We are of the view that the first appellate authority should be given a chance to reconsider the issue on merit. Accordingly, we set aside the impugned order and restore the appeal to its original number in the first appellate authority's records, with the direction to the first appellate authority to reconsider the issue afresh, without insisting for any further pre -deposit and come to conclusion after following the principles of natural justice. We make it clear that we have not made any observations on the merits of the case and have kept all the issues open for the first appellate authority to reconsider the same. Appeal is allowed by of remand to first appellate authority.