2013 (5) TMI 178 - AT - Service Tax

Non-compliance of the pre-deposits - non-discharge of Service Tax on the services rendered for transportation - Held that - we direct the appellant to deposit an amount within a period of eight weeks from today and report compliance before Commissioner (Appeals). The appeal is disposed of by way of remand.

Summary

Issues Involved:
1. Non-compliance of pre-deposit leading to dismissal of appeal by first appellate authority.
2. Service Tax liability on the appellant for non-discharge of tax on transportation services.
3. Direction to deposit a specific amount and appear before first appellate authority for hearing.
4. Restoration of appeal for disposal on merit after compliance with deposit directive.

Analysis:

The judgment by the Appellate Tribunal CESTAT Ahmedabad, delivered by Mr. M.V. Ravindran, focuses on a Stay Petition where the primary issue was the narrow scope of the matter due to the first appellate authority dismissing the appeal for non-compliance with the pre-deposit requirement. The Tribunal decided to dispose of the Stay Petition and proceed directly with the appeal's disposal, considering the Service Tax liability that arose on the appellant concerning the non-payment of tax for transportation services. Instead of delving into the case's merits, the Tribunal deemed it appropriate to direct the appellant to deposit Rs.75,000 within eight weeks and appear before the first appellate authority for a hearing to decide the appeal on its merits. The judgment emphasized the restoration of the appeal to its original status for disposal on merit once the deposit was made and compliance reported, with a specific mention that the first appellate authority must adhere to the principles of natural justice in reaching a conclusion. Ultimately, the appeal was disposed of by way of remand, highlighting the importance of compliance with the deposit directive for further proceedings.