M/s. Khandal Constructions (Partnership Firm) And Anr. vs C.C.E.And S.T., Jaipur-I

Stay Applications in these three appeals were disposed of by us on 16.12.2014. The appellants were directed to deposit Rs.60 lakhs along with

interest, in the ratio of 5:1 within 8 weeks and report compliance on 27.02.2015. This was the condition for granting waiver of pre-deposit of the

balance confirmed quantum of service tax, interest and penalties against all the appellants.

Against order dated 16.12.2014, the appellants filed Writ Petition Nos.3431/2015, 3432/2015 and 3430/2015, respectively. In the Writ Petitions an

Interim Order was passed on 20.03.2015 directing the appellants to comply with the condition of compulsory pre-deposit, in terms of Section 35F of

the Central Excise Act, 1944 (as amended with effect from 06.08.2014 by the Finance Act, 2014), within two weeks.

The appellant in Appeal No.ST/55675/2013 is a partnership firm comprising Shri Sandeep Sharma and had filed the Writ Petition No.3431/2015 in

the High Court of Delhi. The appellant in Appeal No.ST/55676/2013 is a proprietorship firm of Shri Sandeep Sharma, which filed Writ Petition

No.3432/2015. Shri Sandeep Sharma in Appeal No.ST/55677/2013, had filed the Writ Petition No.3133/2015 and the appeal before us against

imposition of penalty.

Shri Sandeep Sharma deposited Rs.9,70,616/-, in compliance with the High Court's order dated 20.03.2015 in respect of appeals preferred by the

proprietorship firm and himself. In terms of Section 35F of Central Excise Act, 1944 as amended with effect from 06.08.2014, 7 ½ % of the

confirmed amount of service tax or penalty as the case may be is required to be deposited. In terms of the said provision, the compulsory deposit in

Appeal Nos.ST/55676 and ST/55677 of 2013 comes to Rs.9,79,746/-.However, only Rs.9,70,616/- has been deposited. Ld. Counsel for the appellants

states that in the circumstances, the amount deposited be credited to Appeal No.ST/55676/2013 (filed by the proprietorship firm).

In the light of the facts and developments recorded above, for failure of compliance with the Interim Order of the High Court dated 20 03.2015, we

dismiss ST/55675/2013 (for total failure of pre-deposit); credit the amount of Rs.9,79,616/- deposited by Shri Sandeep Sharma as a compulsory pre-

deposit in Appeal No.ST/55676/2013 and dismiss Appeal No.ST/55677/2013 preferred by Shri Sandeep Sharma against the penalty imposed against

him.