2013 (5) TMI 24 - AT - Service Tax

Failure of pre-deposit - Held that - As it is represented petitioner /appellant that an appeal to the Punjab & Haryana High Court was preferred against the order dated 11.12.2012, in April 2013 directing to deposit service tax within stipulated time but no order was placed, thus mere filing of an appeal does not eclipse the order dated 11.12.2012. Thus there is default in compliance with the order dated 11.12.2012 of this Tribunal. Consequently, there is failure of pre-deposit by Municipal Council, Karnal.

Summary

Issues: Non-compliance with service tax deposit order by Municipal Council Kaithal and Municipal Corporation, Karnal.

Analysis:
The judgment delivered by Mr. G. Raghuram pertains to the non-compliance of the appellants, Municipal Council Kaithal and Municipal Corporation, Karnal, with the service tax deposit order issued on 11.12.2012. Initially, on 7.11.2012, there was no representation on behalf of the appellants during the hearing. Subsequently, on 11.11.2012, after considering the adjudication order, the appellants were directed to deposit specific amounts of service tax within four weeks and report compliance by 28.1.2013. However, as of 21.1.2013, there was no representation or proof of deposit by the appellants, leading to the matters being listed for judicial pronouncement.

The representation made on behalf of Municipal Council, Karnal, highlighted that an appeal was filed in the Punjab & Haryana High Court against the order dated 11.12.2012 in April 2013. Nonetheless, the absence of any High Court order overturning the Tribunal's order implied that the appeal did not nullify the original directive. Consequently, the failure to comply with the Tribunal's order dated 11.12.2012 resulted in a default in pre-deposit by the Municipal Council, Karnal. This non-compliance led to the dismissal of cases ST/2097/2012 and 2030/2012 concerning the Municipal Council, Karnal, for failing to adhere to the Tribunal's order regarding the service tax deposit.