2023 (9) TMI 1193 - AT - Service Tax

Abatement of appeal upon death of appellant - Rule 22 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 - principles of natural justice - HELD THAT - After perusing the material on record, it is found that the Respondent has died on 12.05.2019 during the pendency of the present appeal - it is also found that in terms of Rule 22 of Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982, on the death of the appellant, the proceedings will be abated unless an application is made for continuance of such proceedings. In this case, no such application is made. As the Death has occurred on 12.05.2019, nearly four years passed already. In view of the judgement of the Hon ble Supreme Court in the case of SHABINA ABRAHAM AND OTHERS VERSUS COLLECTOR OF CENTRAL EXCISE CUSTOMS 2015 (7) TMI 1036 - SUPREME COURT , wherein it has been held that no proceedings can be initiated or continued against a dead person as it amounts to violation of natural justice in as much as the dead person, who is proceeded against is not alive to defend himself. On the death of the appellant, the appeal stands abated - Appeal disposed off.

Summary

Issues involved: Challenge to order confirming demand of Service Tax for Management and Business Consultancy Service and Business Auxiliary Service, imposition of penalties, abatement of appeal due to death of the appellant.

Challenge to Service Tax Demand: The appellant, an individual undertaking Energy Audit and acting as a sales agent, contested the classification of his services as 'Management or Business Consultancy Service' and 'Business Auxiliary Service'. The appellant argued that his activities were related to planning, organizing, staffing, directing, controlling, and coordinating business activities, specifically Energy Audit to identify energy wastage areas and suggest measures. The lower authorities demanded Service Tax, interest, and penalties after investigation. The appellant claimed that his services did not fall under 'Management Consultancy Services'.

Abatement of Appeal due to Death of Appellant: The appellant passed away during the pendency of the appeal. Rule 22 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 states that proceedings abate upon the death of a party unless an application for continuance is filed by the successor-in-interest or legal representative within sixty days. As no such application was made in this case, and considering the passage of nearly four years since the appellant's death, the Tribunal found that the appeal stood abated. Citing the Supreme Court judgment in Shabina Abraham & Ors. Vs. Collector of Central Excise & Customs, it was held that proceedings cannot be initiated or continued against a deceased person as it violates natural justice by denying the opportunity to defend.

In conclusion, the Tribunal held that the appeal stood abated upon the death of the appellant, and as no application for continuance was filed, the appeal was disposed of accordingly.