NK Sharma Vs Assistant Commissioner (Delhi High Court)
The Delhi High Court has dismissed a petition seeking a partial waiver of the mandatory pre-deposit required to file an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The court, however, granted the petitioner, N.K. Sharma, an extension until October 31, 2025, to pay the remaining amount.
The case originated from a Show Cause Notice dated April 27, 2022, which resulted in an Order-in-Original on March 20, 2023. This order confirmed a service tax demand of Rs. 44,74,935, along with interest and penalties. To file an appeal against this order, the petitioner was required to make a pre-deposit under the relevant provisions of the law, which mandates a certain percentage of the disputed amount.
The petitioner’s counsel informed the court that 7.5% of the pre-deposit had already been paid, and they were seeking a waiver for the remaining 2.5% of the penalty amount, totaling Rs. 1,12,000, citing financial inability.
The Delhi High Court, while considering the petition, relied on established judicial precedents from its own benches. The respondent’s counsel cited the judgment in Diamond Entertainment Technologies vs. Commissioner Central Goods and Service Tax Commissionerate Dehradun and Another (2019 SCC OnLine Del 12414). This case, in the context of the Excise Act, had explicitly held that no waiver of the pre-deposit could be granted. The court further noted that this principle was reaffirmed in the recent judgment of Impressive Data Services Private Limited vs. Commissioner (Appeals-I), Central Tax GST (2025 SCC OnLine Del 2497).
