Just Click Travels Private Limited Vs Union Of India & Ors. (Delhi High Court)
Delhi High Court allowed the petition for waiver of mandatory pre-deposit under section 35F of the Central Excise Act, 1944 since demand qualifies the test of rare and exceptional case. Thus, writ allowed.
Facts- The present appeal has been preferred by the petitioner. Notably, one of the liabilities which stood raised against the petitioner was with respect to commission income and while dealing with this the Adjudicating Authority took note of a letter dated 05 March 2019 in which the petitioner had admitted that it had short paid service tax amounting to INR 1,39, 32,179/-. It was on the aforesaid basis that the Adjudicating Authority proceeded to compute the demand payable in respect thereof. Insofar as the contention of amounts standing in the positive in the shape of CENVAT credit is concerned, the authority had noted that no documentary evidence of existing CENVAT credit had been placed on the record.
Although the principal challenge is to the Order-in-Original dated 10 March 2023, the petitioner has been constrained to approach this Court in light of the provisions made in Section 35F of the Central Excise Act, 1944 and in terms of which a condition of pre-deposit has come to be created in terms of this statute.
