CAPITAL COLOUR LAB Vs. CCE (ST)

JUDGEMENT

(1.) AFTER examining the records and hearing both sides, we find that this is a fit case for summary disposal. Accordingly, after waiver of predeposit, we take up the appeal for disposal.

(2.) THE original authority had demanded service tax of over Rs. 23 lakhs from the appellants for the period 1.7.03 to 9.9.04 under Section 73 of the Finance Act, 1994 and had imposed on them equal amount of penalty under Section 76 of that Act, besides another penalty of Rs. 25 lakhs under Section 78. Against this decision, the party preferred appeal to the Commissioner (Appeals) and filed therein an application for waiver of predeposit and stay of recovery in respect of the amounts of service tax and penalties. The appellate authority directed predeposit of an amount of Rs. 10 lakhs under Section 35F of the Central Excise Act read with Section 83 of the Finance Act, 1994. The appellants applied for modification of the said direction for predeposit, but that application was rejected. In the result, for want of predeposit, the appeal got dismissed. Hence the present appeal.

(3.) AFTER hearing both sides and considering their submissions, we find that, in similar cases of four other parties, we had ordered remand for disposal of appeals by the lower appellate authority on merits without insisting on predeposit vide Final Order No. 186 -189 dt. 1.3.2007 in appeal Nos. S/268 -271/06. Following the said precedent, we allow the present appeal by way of remand directing the Commissioner (Appeals) to dispose of the assessee's appeal on merits without insisting on predeposit but after giving the appellants a reasonable opportunity of being heard.