2008 (9) TMI 238 - AT - Service Tax

Allegation that appellants were receiving advertisement from their customers for publishing in print media and they have not paid the amounts collected by them - appellants have taken a plea that the show cause notice dated 24-5-2007 is barred by time as the period pertains to 2001 onwards - As the appellants have substantially deposited the amounts the prayer for waiver of balance amount of tax and penalties are accepted. The stay application is allowed

Summary

Issues involved: Condonation of delay in filing appeal, waiver of pre-deposit of Service Tax amount and penalties, suppression of facts, extension of period of limitation, stay application.

Condonation of Delay in Filing Appeal:
The appellant sought condonation of a 16-day delay in filing the appeal, citing issues with the individual responsible for filing the affidavit. The Director of the Company filed an affidavit regarding the delay. The Tribunal, after hearing both sides, condoned the delay and allowed the miscellaneous application. The stay application was then taken up for hearing.

Waiver of Pre-deposit of Service Tax Amount and Penalties:
In the stay application, the appellant requested a waiver of the pre-deposit of a substantial Service Tax amount and penalties under Section 78, along with other penalties. The appellant had already pre-deposited a significant sum. The appellant, categorized as an "Advertising Agency," argued that they had not paid the amounts collected for publishing advertisements. They also contended that the show cause notice was time-barred as it pertained to a period from 2001 onwards. The Tribunal considered the submissions and accepted the request for waiver of the balance amount of tax and penalties, given the substantial deposits made. A stay order was granted, preventing any recovery until the appeal was heard, even after the expiry of 180 days.

Suppression of Facts and Extension of Period of Limitation:
The Senior Departmental Representative argued that there was suppression of facts by the appellant and non-compliance with filing returns regularly, justifying the raising of demands by extending the period of limitation. However, the Tribunal, after careful consideration, accepted the appellant's submissions due to the substantial deposits made, granting the waiver of the balance amount of tax and penalties and allowing the stay application.

This judgment by the Appellate Tribunal CESTAT Bangalore involved issues related to the condonation of delay in filing the appeal, waiver of pre-deposit of Service Tax amount and penalties, suppression of facts, extension of the period of limitation, and the grant of a stay application. The Tribunal, after considering arguments from both sides, allowed the condonation of the delay, accepted the request for waiver of the balance amount of tax and penalties, and granted a stay order preventing recovery until the appeal was heard, even after the expiry of 180 days.