Service Tax - Pre-deposit by even a Govt Department?
WHEN an appeal is made to the Commissioner (Appeals) or the Tribunal, pre-deposit of the duty, penalty and interest is insisted mainly to safeguard the interest of Revenue.
What is the position if the appellant is a Government Ministry/Department? Isn't the interest of Revenue amply safeguarded? Not in the quagmire of Indian litigation.
The Central Railway was the appellant before CESTAT, which ordered a pre-deposit of Rs 1.62 Crore. Aggrieved Central Railway took the matter to the High Court with the plea that the dues of the Union Government are secure since, after all, it is the Union Ministry of Railways, which has to pay the demand if it is found to be due and payable.
Even the High Court did not find it a fit case for complete waiver of pre-deposit and ordered a deposit of Rs. 50 lakhs.
This is simply transferring money from one department of the Government to another and do we need litigation for this. Who benefits from this litigation? Even the Railways could have paid the amount without going to the High Court.