DD interiors Vs Commissioner of Service Tax & Anr (Delhi High Court)
Delhi High Court, in the case of DD Interiors vs. Commissioner of Service Tax & Anr, ruled that the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) cannot reject an appeal solely because the pre-deposit was made in the wrong account. The petitioner challenged the November 8, 2024 order, arguing that the pre-deposit, made in August 2018, was valid despite being credited to an incorrect account. The petitioner cited confusion during the transition to the GST regime, along with a 2022 CBIC clarification, which stated that such deposits should be made through an integrated portal. The court also referenced a Bombay High Court ruling (Sodexo India Services Pvt. Ltd. vs. Union of India, 2022), which held that procedural errors in deposit allocation should not be grounds for rejecting an appeal. The Delhi High Court emphasized that the lack of a functional integrated portal or lack of taxpayer awareness should not penalize the appellant. The case has been sent back for reconsideration by CESTAT, with instructions for a competent official from the Respondent-Department to provide clarity on the portal’s implementation timeline. Until further orders, no coercive action will be taken against the petitioner. The matter is listed for the next hearing on February 21, 2025.
