2014 (12) TMI 1142 - HC - Service Tax

Condonation of delay - Inordinate delay of 175 days - Held that - Tribunal has committed an error by rejecting the application filed by the petitioner for condonation of delay caused in filing the appeal and also committed an error by not considering the grounds set out in paragraph nos. 2 and 3. In paragraph nos. 2 and 3 of the application for condonation of delay, the applicants have shown sufficient cause for not preferring the appeal within the limitation period. Thus we are of the considered opinion that sufficient cause is shown by the original appellants applicants in the application for condonation of delay. Even otherwise, opportunity is required to be given to the petitioners to submit their case on merits before the Appellate Tribunal. - Order passed by the Tribunal is hereby quashed and set aside - Decided in favour of assesse.

Summary

Issues:
Seeking to quash and set aside an order passed by the Appellate Tribunal and direct the Tribunal to hear and decide the appeal without considering the delay in filing the appeal.

Analysis:
The petitioners, a private limited company running a club, received a show cause notice proposing service tax recovery under Event Management Service and Club or Association Service. An adjudication order confirmed the service tax demand for Club or Association Service, leading to an appeal before the Commissioner (Appeals) and subsequently to the Customs Excise & Service Tax Appellate Tribunal, West Zonal Bench, Ahmedabad. The Tribunal rejected the application for condonation of delay in filing the appeal based on various grounds, including the delay being taken lightly, lack of sworn affidavit by the Director or authorised representative, and the representative's ability to file the appeal on time. The High Court found that the Tribunal erred in rejecting the application, as the petitioners had shown sufficient cause for the delay in their application. The Court emphasized the need to provide an opportunity for the petitioners to present their case on merits before the Appellate Tribunal.

Therefore, the High Court allowed the petition, quashed the Tribunal's order, and directed the Tribunal to decide the appeal in accordance with the law and on its own merits. The Court highlighted that the petitioners had demonstrated sufficient cause for the delay, necessitating a fair consideration of their case by the Appellate Tribunal.