The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) while remanding the matter back held that the debit in electronic credit ledger as valid pre-deposit.
The bench of Anil G. Shakkarwar (Technical Member) has observed that the Tribunal in the interim order has held that if debit is made in electronic credit ledger, i.e. DRC-03, before 28.10.2022 towards payment of pre-deposit under the Section 35F, then such debit is valid and it is to be concluded that the provisions of the said Section 35F have been complied with.
The appellant/assessee filed an appeal before Commissioner (Appeals) challenging order through which cenvat credit of service tax was disallowed with equal penalty. Appellant paid mandatory pre-deposit required to be paid under Section 35F of Central Excise Act, 1944 made applicable to service tax matters, by debiting Rs.47,102/- from DRC-03 by debiting the electronic credit ledger. The appeal was decided by the Commissioner (Appeals).
The Commissioner (Appeals) has recognized payment of Rs.47,102/- paid through electronic credit ledger by debit entry dated 04.06.2021 and held that DRC-03 cannot be used for payment of pre-deposit for compliance of the provisions of the said Section 35F. He concluded that the mandatory pre- deposit was not made and, therefore, he rejected the appeal filed by the appellant before him as non-maintainable for want of pre-deposit.
The CESTAT directed the tribunal to set aside the order and remand the matter to the Commissioner (Appeals) to decide the appeal before him on merit.
Case Details
Case Title: Reliance Jio Messaging Services Ltd. Versus Commissioner of C.Ex. & Service Tax
Case No.: Service Tax Appeal No. 86167 of 2022
Date: 13.06.2025
Counsel For Appellant: Akshit Malhotra
Counsel For Respondent: A.P.S. Parihar
