2014 (10) TMI 348 - AT - Service Tax

Condonation of delay - Penalty u/s 76 - Held that - Commissioner is empowered to condone the delay for one month in addition to the statutory time-limit of two months, pursuant to the amendment inserted to Section 85 of the Finance Act, 1994, which have been made effective w.e.f. 28.08.2012, and applicable to the orders passed thereafter. Undisputedly, in the present case, the Order is passed on 03.05.2012, accordingly, the said provision is applicable. In view of the above position and since the ld. Commissioner is empowered to condone the delay upto one month. I do not find merit in the present Appeal. - Decided against assessee.

Summary

Issues: Application for waiver of predeposit of penalty under Section 76 of the Finance Act, 1994; Dismissal of appeal by Commissioner due to delay in filing; Power of Commissioner to condone delay beyond statutory time-limit.

In the judgment, the issue at hand was an Application seeking waiver of predeposit of penalty of Rs. 95,000 imposed under Section 76 of the Finance Act, 1994. The Revenue submitted that the appeal was dismissed by the Commissioner due to a delay in filing the appeal, with the Order-in-Original dated 31.05.2012 received on 14.06.2012 and the appeal filed on 21.09.2012. The Revenue argued that the statutory time-limit for filing the appeal had been reduced to two months with a condonable limit of one month, applicable to orders passed after 28.05.2012. The Commissioner was said to have the power to condone the delay by one month in addition to the statutory limit. The Applicant did not dispute these facts. The Tribunal found that the Commissioner was indeed empowered to condone the delay for one month in addition to the statutory time-limit of two months, as per the amendment to Section 85 of the Finance Act, 1994. As the Order in this case was passed on 03.05.2012, the provision was applicable. Consequently, the Tribunal dismissed the Appeal and disposed of the Stay Petition, finding no merit in the appeal.

This judgment highlights the importance of adhering to statutory time-limits for filing appeals and the Commissioner's power to condone delays within the specified limits. The Tribunal's decision was based on the specific provisions of the Finance Act, 1994, and the applicability of the amended Section 85 to the case at hand. The case law cited regarding the Commissioner's authority to condone delays beyond the statutory time-limit also played a crucial role in the Tribunal's decision. Overall, the judgment emphasizes the significance of procedural compliance and the impact of legislative amendments on appeal timelines in taxation matters.