2016 (8) TMI 944 - AT - Service Tax

Condonation of delay rent out the bus stand to petty shops tax collected by appellant but not paid lack of knowledge on the part of office bearers no intention of delay applicability of service tax - Held that - The appellant is a town panchayat and as per the table provided at page-6 of the paper book, it is seen that they have not reached the minimum threshold limit of ₹ 10.00 Lakhs during the relevant period to register for service tax for the period 2007 to 2012. Appellant not applicable for service tax delay condoned - appeal allowed - decided in favor of appellant.

Summary

Issues: Condonation of delay in filing appeal, applicability of service tax, minimum threshold limit for service tax registration

Condonation of Delay in Filing Appeal:
The appellant, a Town Panchayat body, filed an application for condonation of delay of 531 days in filing an appeal against the Order-in-Appeal passed by the Commissioner of Central Excise (Appeals). The appellant's representative argued that the delay was due to administrative exigencies and lack of knowledge on service tax laws, as the office bearers were not educated. It was emphasized that the delay was neither wilful nor deliberate. The appellant sought condonation of delay, stating that the issue related to the applicability of service tax concerning the minimum threshold required for registration and payment of service tax. The Tribunal considered the submissions and decided to condone the delay, allowing the appeal to be heard on its merits.

Applicability of Service Tax:
The central issue in this case revolved around the applicability of service tax to the appellant, a Town Panchayat. The appellant had rented out a bus stand to petty shops, resulting in a tax collection of ?1,27,620, which was below the taxable limit. The appellant contended that they did not reach the minimum threshold limit of ?10.00 Lakhs during the relevant period for service tax registration (2007 to 2012). The Tribunal examined the evidence, including a table provided in the paper book, which confirmed the appellant's position regarding the threshold limit. Consequently, the Tribunal set aside the Order-in-Appeal and allowed the appeal, ruling in favor of the appellant based on the lack of meeting the minimum threshold for service tax registration.

In conclusion, the Appellate Tribunal CESTAT Chennai, comprising Shri P. K. Choudhary and Shri C.J. Mathew, addressed the issues of condonation of delay in filing the appeal and the applicability of service tax to a Town Panchayat. The Tribunal granted condonation of the delay, considering the appellant's reasons and proceeded to decide on the appeal's merits. Regarding the applicability of service tax, the Tribunal found that the appellant did not reach the minimum threshold limit required for service tax registration, leading to the appeal being allowed and the Order-in-Appeal being set aside.