2013 (7) TMI 741 - AT - Service Tax

Condonation of delay assessee provided the services of Consulting Engineer s Service and the demands were made along with interest assessee pleaded for condonation of delay - Held that - Delay cannot be condoned mechanically merely because government or its wing is a party before the Court - it is not the length of the delay but the adequacy of the explanation for the delay that is relevant criteria while considering the COD application - Ignorance of law is not an excuse - In the absence of plausible and acceptable explanation, government cannot plea that there was no gross negligence or deliberate inaction or lack of bona fide and liberal concession has to be adopted to advance substantial justice - following the decisions in N.Balakrishnan vs. M.Krishnamurthy (1998 (9) TMI 602 - SUPREME COURT OF INDIA) and Chief Post Master General vs. Living Media India Ltd. (2012 (4) TMI 341 - SUPREME COURT OF INDIA), application for cononation rejected - decided against assessee.

Summary

Issues:
Delay in filing appeal due to vacancy in managerial position and lack of legal expertise, classification of service under 'Consulting Engineer's Service', rejection of COD applications, confirmation of Service Tax demands.

Analysis:
The case involved an appeal by a government undertaking against the confirmation of Service Tax demands for activities classified under 'Consulting Engineer's Service'. The appellant, a state electricity distribution company, filed the appeal with a delay of 579 days citing a vacancy in the position of Junior Manager (F&A) and lack of legal expertise as reasons for the delay.

The appellant's explanation for the delay was deemed unsatisfactory by the Bench. Citing the N.Balakrishnan vs. M.Krishnamurthy case, the Bench emphasized that the adequacy of the explanation for the delay is crucial. The appellant's claim of ignorance of the law and vacancy in a managerial position were not considered valid reasons for the delay in filing the appeal. The Bench highlighted that ignorance of the law is not an excuse, and vacancies in government departments are common occurrences that should not hinder the timely filing of appeals.

Referring to the Office of Chief Post Master General vs. Living Media India Ltd. case, the Bench emphasized that delays cannot be condoned merely because the government is a party in the case. The lack of a plausible and acceptable explanation for the delay led the Bench to reject the COD applications. The Bench also noted that if the appellant lacked legal expertise, they should have engaged the services of an expert or utilized government-appointed counsels for legal matters.

Ultimately, the Bench rejected the COD applications, leading to the rejection of the appeals and stay applications as well. The decision was based on the unsatisfactory nature of the explanation provided for the delay in filing the appeal, emphasizing the importance of adhering to statutory time limits and engaging appropriate legal representation when necessary.