SAGAR CONSTRUCTION Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner has challenged an order dated 10th December 2013 passed by the Customs, Excise & Service Tax Appellate Tribunal ("Tribunal" for short). The issue pertains to pre -deposit for entertaining the appeal before the Tribunal. Before the Tribunal, the petitioner had challenged order of the adjudicating authority confirming the duty demand of service -tax of Rs. 4.41 Crores [rounded off] with interest and penalties. Against such demand, the Tribunal by the impugned judgment directed the petitioner to make a pre -deposit of Rs. 50 lakhs within eight weeks from the date of the order, subject to which, rest of the demand would be stayed till disposal of the appeal. Having heard learned counsel for the petitioner and having perused the documents on record, we do not see any error committed by the Tribunal in passing the said order. The case before the Tribunal put -forth by the petitioner was that the entire demand is not sustainable and that, the petitioner had a strong prima facie case. Tribunal did consider such contentions but came to the conclusion that the entire issue would require further elaborate consideration. However, bearing in mind the facts of the case, reduced the pre -deposit to Rs. 50 lakhs against the principal tax demand of Rs. 4.14 Crores. Considering the principal demand itself, the requirement of pre -deposit come to less than 20% and even considering the interest and penalties, the same would be much lesser.

(2.) IT appears that before the Tribunal, the petitioner had not established financial hardship. From the order of the Tribunal, it appears that during the course of argument, the petitioner did raise such a contention, however, the Tribunal did not find any pleadings in support of the same. It is well -settled that financial hardship must not be only pleaded but the same must also be proved. In absence of any specific pleading and no proof at all, the Tribunal could not have taken into account any so -called financial hardship of the petitioner in making the pre -deposit. Looking to the overall facts and circumstances of the case, we do not find any reason to entertain this petition. Petition is dismissed. However, we still extend the time for making pre -deposit of the amount, as directed by the Tribunal, upto 15th June 2014. If so done, Tribunal shall hear the appeal on merits.