2014 (7) TMI 1154 - AT - Service Tax

Non compliance of direction of High Court to execute bank guarantee in lieu of pre-deposit of amount as ordered by the Tribunal in the stay order - there has been delay of more than four weeks in making compliance with the Order of the Hon ble High Court - Ld. Consultant for the Appellant submits that they may be given an opportunity to approach the Hon ble High Court to seek an appropriate Order in this regard. In the interest of justice, accordingly, the matter is adjourned.

Summary

Issues: Compliance with tribunal order, execution of bank guarantee, delay in compliance, appeal dismissal

Compliance with Tribunal Order:
The Appellate Tribunal had directed the Appellant to deposit a specific amount within a specified period. However, the Applicant filed a Writ Petition before the High Court seeking to execute a Bank Guarantee instead. The High Court directed the Applicant to execute the Bank Guarantee within a week, but the Applicant delayed compliance by more than four weeks. The Ld. Consultant for the Applicant requested an opportunity to approach the High Court for an appropriate Order, leading to an adjournment of the matter.

Execution of Bank Guarantee:
The High Court, in response to the Writ Petition, directed the Applicant to execute a Bank Guarantee of a specific amount within a week. The Applicant, despite the delay, eventually executed the Bank Guarantee after more than four weeks from the High Court's Order.

Delay in Compliance:
The delay in compliance with the High Court's Order was acknowledged by the Ld. Consultant for the Applicant. The delay of more than four weeks in executing the Bank Guarantee as per the High Court's directive was highlighted during the proceedings.

Appeal Dismissal:
The Revenue argued that there was a clear violation of the High Court's Order, indicating that the appeal should be dismissed. The Ld. Consultant for the Appellant requested an opportunity to seek an appropriate Order from the High Court, leading to an adjournment of the matter in the interest of justice.

This judgment reflects the importance of timely compliance with tribunal and court orders, the consequences of delays in execution, and the opportunity for parties to seek appropriate relief through legal avenues.