Case Law Details
Kaviyoor Service Co Operative Bank Ltd Vs Commissioner of Central Tax (Kerala High Court)
Introduction: The Kerala High Court recently addressed a writ petition filed by the Kaviyoor Service Co-operative Bank Ltd. The case involved an order passed by the Assessing Authority confirming a demand for service tax and penalties. The petitioner had appealed the decision to the Commissioner of Central Excise (Appeals), but the appeal was dismissed due to the non-compliance with mandatory deposit requirements. This article provides a detailed analysis of the case and the court’s decision.
Background: The petitioner, a cooperative bank situated at Kaviyoor, challenged an order dated 28.10.2021 by the Assessing Authority. The order confirmed a demand for service tax, Swatch Bharat Cess, and Krishi Kalyan Cess, totaling Rs. 2,43,306. Additionally, a penalty equal to 100% of the service tax amount was imposed under Section 78 of the Finance Act, 1994. The order also included penalties under Sections 77(1) and 77(2) of the Act.
Appeal to Commissioner: In response to the order, the petitioner filed an appeal (Ext.P2) before the Commissioner of Central Excise (Appeals), Ernakulam, under Section 85 of the Act. However, the appeal was dismissed (Ext.P3) as the petitioner had not complied with the mandatory deposit requirement of 7.5% of the assessed tax amount.
Legal Argument: The petitioner’s counsel argued that they would comply with the mandatory deposit requirement within ten days from the present date. They requested the court to allow the appeal to be heard and decided on its merits, subject to the deposit. The counsel also requested that any delay in filing the appeal should be considered with an application for the condonation of delay.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
