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EXCISE
Mandatory Pre-Deposit against Right to Appeal. The Concept of Stay Application has been dumped. (Effective From the date when President of India gives assent to Finance Bill)
| Particulars | Old | New effective from date of enactment |
| Appeal before Commissioner of Service Tax(Appeal) | The Appellate Authority including Tribunal on case to case basis decides amount of pre-deposit to be paid after hearing stay application. Both merit and financial hardship were considered before disposal of any stay Application |
7.5% of duty demanded or penalty or both |
| Appeal before Tribunal (if 1st stage Appeal) | 7.5% of duty demanded or penalty or both | |
| Appeal before Tribunal (if 2nd stage Appeal) | 10% of duty demanded or penalty or both |
The above provision would have following impact:
- Deserving cases wherein complete stay should have been given by the appellant forum would be liable to pay almost 15% of the duty demanded (considering penalty @ 100% of duty demanded)
- An Assessee filing appeal after paying 100% of duty under protest would also be required to pay such deposit.
- There is no clarity on the fact that if an assessee loses first appeal whether he has to pay additional 10% of duty demanded/penalty/both or differential 2.5% having paid 7.5% before the first Appellate Authority.
- The above provision would not apply to pending stay and Appeal before the date of enactment of Finance (No. 2) Bill, 2014.
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