2018 (8) TMI 1464 - AT - Service Tax

Restoration of appeal - appeal was dismissed on the ground of non-compliance of the cost ordered - Held that - The total demand confirmed is approximately Rs. 51, 79, 564/- as against the demand of Rs. 42, 17, 148/-. It transpires from the records that the appellant had deposited Rs. 16, 19, 750/- during the proceedings and further Rs. 10, 00, 000/- in February 2013. These all are evidenced by the Tribunal. Since the appellant has deposited almost Rs. 26, 00, 000/- against the confirmation of Rs. 51, 79, 564/- and contesting the issue on merits it is considered that the amount deposited by the appellant herein is enough to hear and dispose of appeal on merits - appeal restored.

Summary

Issues involved:
1. Restoration of appeal due to non-compliance of cost order.
2. Stay petition for service tax liability under Manpower Recruitment or Supply Agency Services.

Analysis:
1. Restoration of appeal: The appeal was dismissed due to non-compliance with the cost order. However, the appellant had deposited the required cost but failed to inform the Tribunal, resulting in the dismissal of the appeal. The Bench had earlier condoned the delay in filing the appeal subject to the payment of cost and compliance. Upon verifying the records and GAR-7 challans showing the deposit of the cost, the Tribunal recalled the final order and directed the registry to restore the appeal for disposal.

2. Stay petition for service tax liability: The Tribunal considered the appellant's deposit of approximately &8377; 26,00,000 against the confirmed demand of &8377; 51,79,564 in the category of Manpower Recruitment or Supply Agency Services. The appellant had already deposited &8377; 16,19,750 during the proceedings and an additional &8377; 10,00,000 in February 2013. Given the amount deposited and the contestation of the issue on merits, the Tribunal allowed the application for waiver of pre-deposit of the balance amount and stayed the recovery until the appeal's disposal. This decision was made after hearing both sides and examining the records in the stay petition.

In conclusion, the judgment by the Appellate Tribunal CESTAT Hyderabad addressed the issues of restoration of appeal due to non-compliance of a cost order and a stay petition concerning service tax liability under Manpower Recruitment or Supply Agency Services. The Tribunal reinstated the appeal after verifying the appellant's compliance with the cost order and allowed the waiver of pre-deposit for the balance amount in the service tax liability case, staying the recovery until the appeal's final disposal.