SUDHAS LAB Vs. COMMISSIONER OF C. EX., HYDERABAD

JUDGEMENT

(1.) THE stay application and the appeal are taken up together for the disposal as the issue lies in a short compass. The appellants appeal was dismissed for non -compliance in terms of provisions of Section 35F of the Central Excise Act, 1944. The appellant was directed to pre -deposit a sum of Rs. 2.5 lakhs which they did not deposit, hence the appeal was dismissed. It was the submission of the appellants that the appellants and another unit at 1st Floor namely, M/s. Sudha Digital Images have obtained registration for common service and paid service tax which had not been originally accepted. However, on appeal the matter was remanded. On remand, the Original authority accepted the contention that the assessable value as declared by the assessee was required to be accepted. The learned Counsel submits that in view of the subsequent proceedings, the present order of dismissal is not justified. He submits that the matter is required to be remanded to the Original authority so that they can produce the subsequent order for application in this matter also.

(2.) THE learned Jt. CDR does not oppose the prayer for remanding the matter to the Original authority.

(3.) ON a careful consideration of the matter, it is seen that the appellants along with M/s. Sudha Digital Images had obtained registration for common service. After computation of tax, M/s. Sudha Digital Images filed an appeal against the Order -in -Original. In appeal, the Commissioner (Appeals) had remanded the matter to the Original authority and the Original authority in Order -in -Original No. 15/2005 -S. Tax (de novo) dated 30 -6 -2005 had accepted the contention raised by the said M/s. Sudha Digital Images. The said order will have a bearing on the present case. In these circumstances, the Commissioners direction to pre -deposit the amount is not justified. Therefore the impugned order is set aside and the matter is remanded to the Original authority so that the matter can be re -examined in the light of the contention raised by the appellants. The order passed in the case of M/s. Sudha Digital Images will have a bearing on the matter. The Original authority to pass an order after granting an opportunity of hearing to the appellants and taking all their submissions including the order in the case of M/s. Sudha Digital Images (supra), within a period of three months on receipt of this order.