NEPTUNE REALITY PVT. LTD. Vs. PRINCIPAL COMMISSIONER

JUDGEMENT

(1.) The petitioner has directly challenged an order-in-original passed by the Commissioner of Service Tax under which she has confirmed substantial tax and penalty demands which comes to approximately Rs. 2 crores each. The sole reason for by-passing the appellate remedy cited before us is that the case involves complex accounting entries which the petitioner is in a position to reconcile. Given a chance, the petitioner would be able to persuade the Commissioner that there had been no default in payment of Service Tax nor there had been any delay in depositing the same with the Government. Petitioner's case is that after the new incumbent on the post heard the petitioner on one occasion, the petitioner expected a further hearing on audit if any, further discussion was necessary.

(2.) Respondents have filed an affidavit refuting these averments mainly contending that the petitioner's hearing took place on 18-7-2017. At the end of the hearing, petitioner also submitted written submissions to the Commissioner. After taking into account, oral arguments as well as written submissions passed the impugned order.

(3.) In facts of the case when the issues depend largely on facts and predominantly various entries, we are not averse to granting one more opportunity to the petitioner to present the case before the Commissioner. This would also reduce the burden of the Tribunal who would have the benefit of a detailed order. This however, cannot be done unconditionally. To instill sense of seriousness, we would require the petitioner to deposit certain sum before the Commissioner by way of a condition for remand. We notice that the statute requires pre-deposit of 7.5% for filing appeal before the Tribunal. In other words, even if the petitioner were to file appeal against the impugned order of the Commissioner, he would have to deposit 7.5% of the disputed demand.