2015 (1) TMI 595 - AT - Service Tax

Waiver of pre deposit - application for extension of time for compliance of the stay order - Payment made by demerged company - Held that - Applicant-company St. John CFS Park Pvt. Ltd., was directed to make a pre-deposit of ₹ 20,00,000/-. There is no dispute that the Registration Certificate is still alive in favour of St. John CFS Park Pvt. Ltd. It is also noted that there is no order of the High Court for amalgamation or the withdrawal of the demerger proposal of the applicant-company with the other company. It is seen from the records that the applicant filed applications dated 21.01.2014 and 15.04.2014 before the Tribunal requesting for time to produce the order the High Court. It is further seen from the records that thereafter the applicant-company was given several opportunities to produce the requisite order from the High Court with regard to the amalgamation of both companies. But no order of the Hon ble High Court was placed. Hence, the deposit made by M/s. St. John Freight System Ltd. cannot be accepted as compliance of the stay order 2013 (11) TMI 872 - CESTAT CHENNAI . - appeal gets dismissed for non-compliance of the stay order - Decided against assesse.

Summary

Issues: Compliance with stay order, extension of time for compliance, change of cause title

Compliance with stay order:
The judgment revolves around the compliance of a stay order requiring the applicant to make a pre-deposit of Rs. 20,00,000. The Tribunal granted extensions for compliance twice, considering the applicant's circumstances. However, the issue arose when the deposit was made by a different entity, leading to a dispute. The Tribunal found that the applicant failed to provide the necessary order from the High Court regarding amalgamation, rendering the deposit invalid for compliance with the stay order. Consequently, the Tribunal dismissed the appeal due to non-compliance with the stay order.

Extension of time for compliance:
The applicant sought extensions for compliance with the stay order on multiple occasions, citing reasons such as an accident and the demerger of companies. Despite being given opportunities to produce the required High Court order for amalgamation, the applicant failed to do so. The Tribunal noted the lack of evidence supporting the applicant's claim for compliance, ultimately leading to the dismissal of the appeal.

Change of cause title:
An application was filed for a change of cause title to reflect the applicant's name as St. John Freight System Ltd. instead of St. John CFS Park Ltd. However, as the Service Tax Registration remained in favor of St. John CFS Park Pvt. Ltd., the Tribunal dismissed the application for a change of cause title. Consequently, the appeal was also dismissed for non-compliance with the stay order, emphasizing the importance of accurate legal documentation and compliance with court orders.

This judgment highlights the significance of strict compliance with court orders, especially in matters involving financial deposits and legal documentation. It underscores the importance of providing accurate and timely information to the Tribunal to avoid dismissal of appeals due to non-compliance. The case serves as a reminder for parties involved in legal proceedings to diligently adhere to court directives and provide necessary evidence to support their claims effectively.