2014 (1) TMI 47 - AT - Service Tax

Stay application - Nexus of payment with demand - Held that - appellant paid a total amount of nearly Rs.2.13 crores towards the impugned demand of Rs.2.39 crores inasmuch as the appellant is yet to receive any negative response to their letter dated 30.4.2013. Considering the substantial payment towards the impugned demand, which is open to scrutiny by the respondent, we grant waiver of pre-deposit and stay of recovery in respect of the balance dues. It is open to the respondent to verify the aforesaid claim of the party and report to this bench in the event of the claim being wholly or partly found incorrect - Prima facie case in favour of assessee - Stay granted.

Summary

Issues: Delay in filing appeal, waiver and stay against outstanding dues

Delay in filing appeal:
The judgment addresses a delay of 9 days in filing the appeal, which has been satisfactorily explained, leading to the allowance of the COD application. This issue is succinctly resolved by the Tribunal.

Waiver and stay against outstanding dues:
The appellant had paid a significant amount before the issuance of the show-cause notice, which was appropriated by the adjudicating authority. However, discrepancies arose when the appellant claimed to have made a higher total payment, but failed to establish a correlation with the demand in the notice. The Commissioner did not order any appropriation due to this lack of evidence. The appellant later submitted a letter detailing payments made towards the demand, totaling Rs.2,12,95,437. The Additional Commissioner (AR) highlighted the need to verify these claims. The Tribunal, considering the substantial payment made by the appellant, granted waiver of pre-deposit and stay of recovery for the remaining dues, pending verification by the respondent. The Tribunal emphasized that the respondent should report any discrepancies found in the appellant's claim.

This judgment from the Appellate Tribunal CESTAT Bangalore delves into two primary issues: the delay in filing the appeal and the request for waiver and stay against outstanding dues. The Tribunal first addresses the delay, noting a 9-day delay that was adequately explained, leading to the allowance of the COD application. Moving on to the second issue, the Tribunal examines the appellant's payments towards the outstanding dues. While the appellant had made a substantial payment initially, discrepancies arose when the appellant claimed to have paid a higher amount without providing sufficient evidence to correlate these payments with the demand raised in the show-cause notice. The Commissioner did not order any appropriation due to this lack of substantiation. The appellant later submitted a detailed letter outlining payments made, but the Additional Commissioner emphasized the need for verification. Despite this, the Tribunal, considering the significant payment made by the appellant, granted waiver of pre-deposit and stay of recovery for the remaining dues, subject to verification by the respondent. The Tribunal underscored the importance of the respondent reporting any inaccuracies found in the appellant's claim, highlighting the need for transparency and accuracy in the payment details provided.