2011 (1) TMI 709 - AT - Service Tax

Condonation of delay - Demand - Notification No. 24/2009, dated 27-7-09 - When the appellants approached the PWD authorities with the order of dismissal passed by the Commissioner (Appeals) on 15-7-2009, he was informed that as the said activity has been exempted, the appellants being illiterate person and not knowing that the order is required to be challenged, did not file any appeals on the advise of authorities and it was only subsequently, that he was advised to file the appeal - Decided against the assessee by way of direction to deposit Rs. 60,000/-

Summary

Issues: Delay in filing appeal, non-compliance with deposit order

Delay in filing appeal:
The appeal sought to condone a delay of 101 days in filing the appeal due to the impugned order of the Commissioner (Appeals) dismissing the appeal for non-compliance with the stay order requiring a deposit of Rs. 60,000. The appellants argued that the service tax confirmed against them for services rendered to the PWD for road repairs was exempted by Notification No. 24/2009 dated 27-7-09, which they were unaware of initially. The appellants, being illiterate, did not challenge the order immediately based on the advice of authorities. The Tribunal, understanding the circumstances, condoned the delay of 101 days in filing the appeal and allowed the COD.

Non-compliance with deposit order:
The impugned orders had dismissed the appeal for non-compliance with the direction to deposit Rs. 60,000 as a condition for the appeal hearing. The appellants expressed willingness to deposit the said amount if given some time. Consequently, the Tribunal directed the appellants to deposit the amount within 8 weeks and report compliance to the Commissioner (Appeals), who would then decide the appeal on its merits after verifying compliance. The COD application, stay petition, and appeal were disposed of in this manner.