Please refer to the DYK Series 323 titled Clarification on pre-deposit of amount in relation to appeals in Service tax.

In this regard, reference is made to the circular bearing F. No. 15/CESTAT/general/2013-14 dated 28 August 2014 (“Circular dated 28 August 2014”) issued by CESTAT, which clarified as follows:

• Pre-deposit of the amount of Service tax or duty of Excise can be made through reversal of CENVAT Credit; and
• Pre-deposit of the amount of penalty has to be made in Cash