SKODA's Petition against Rs. 30 Crore pre-deposit Dismissed by Supreme Court
OF late, Tribunals and Courts are not in favour of waiving pre-deposits and appeals in High Courts and Supreme Court are failing with routine regularity.
Today we are carrying a High Court order wherein the writ petition of Skoda Auto India, against the CESTAT order requiring them to make a pre-deposit of Rs. 30 Crores, was dismissed by the Bombay High Court. (Please see Breaking News)
The Supreme Court dismissed Skoda's SLP against the above mentioned High Court order. The Supreme Court order dated 02.05.2011 reads as, “We do not find any ground to interfere with the impugned order passed by the High Court. Accordingly, the Special Leave Petition is dismissed. However, we extend the time granted by the High Court for deposit of Rs. 30 Crores by a further period of four weeks from today”
So, Skoda will have to finally pay up that 30 Crores. Out of the total demand of Rs. 97 Crores, they had already paid Rs. 42 Crores as deposit and Rs. 11.54 Crores as Service Tax. Now they will have to pay another Rs. 30 Crores.
The other day, a lawyer was lamenting before a High Court, “we advise the clients based on sound understanding of Law, but the Department does not agree and issue demands running into hundreds of Crores and when we approach the High Courts, normally they don't interfere at the interlocutory stage.”