2015 (8) TMI 541 - AT - Service Tax

Waiver of pre deposit - Subsequent deposit of tax - Held that - Commissioner (Appeals) dismissed the appeal on the ground of default in making pre-deposit. We find that the appellant had subsequently deposited the entire amount of service tax, which in our opinion is sufficient to hear their appeal. Consequently, we remand the matter to the Ld. Commissioner (Appeal) for deciding the issue afresh, on merit, without insisting for any pre-deposit - Decided in favour of assessee.

Summary

Issues: Condonation of delay in filing appeal, waiver of pre-deposit of service tax and penalty, remand for decision on merit

Condonation of delay in filing appeal:
The judgment addressed an application seeking condonation of a 34-day delay in filing an appeal. The delay was attributed to the consultant's son-in-law's accident, affecting the preparation of the appeal. The applicant's Counsel submitted a doctor's certificate in support of this claim. The Revenue's Counsel raised no objections to the condonation. The Tribunal, considering the reasons provided and the medical certificate, condoned the delay. The Counsel then requested to proceed with the stay application, which was allowed.

Waiver of pre-deposit of service tax and penalty:
The stay application sought the waiver of pre-deposit of Service Tax amounting to Rs. 3.01 Lakhs and an equal penalty under Section 78 of the Finance Act, 1994. The Counsel highlighted that the entire service tax amount was deposited subsequently, supported by e-receipts, and requested the matter to be remanded to the Commissioner (Appeal) for a decision on merit. The Revenue's Counsel did not dispute these facts. The Tribunal, after hearing both sides, decided to dispose of the appeal at that stage by waiving the pre-deposit requirement, with the consent of both parties.

Remand for decision on merit:
The Tribunal noted that the appeal was dismissed by the Ld. Commissioner (Appeals) due to default in pre-deposit. However, since the appellant had later deposited the entire service tax amount, the Tribunal deemed it sufficient to hear the appeal on its merits. Consequently, the matter was remanded to the Ld. Commissioner (Appeal) for a fresh decision on merit without insisting on any pre-deposit. The Tribunal emphasized the observance of principles of natural justice and allowed the appeal by way of remand, thereby disposing of the matter. The Miscellaneous Application (COD) was also allowed in this regard.