2006 (4) TMI 38 - AT - Service Tax

Service Tax Appeal - Limitation - Condonation of delay in filing appeal not to be made in the absence of sufficient cause Sufficient cause not exists when appellant not prevented by any particular circumstance to file appeal in appeal

Summary

Issues:
1. Appeal against demand for service tax on goods transport operators service availed.
2. Application for condonation of delay in filing appeal.

Analysis:
1. The appeal was filed by the Commissioner of Central Excise against the demand for service tax on goods transport operators service availed by a company. The original authority demanded an amount along with penalty and interest, which was set aside by the Commissioner (Appeals) based on a Tribunal decision in a similar case. The Tribunal held that Section 73 of the Finance Act, 1994 applied to persons liable to file returns under Section 70, excluding those covered under Section 71, which included Goods Transport Operators. Therefore, the proceedings were deemed not maintainable.

2. The department filed an appeal citing Supreme Court admissions in other cases related to similar issues. The delay in filing the appeal was explained as being due to new information regarding the Supreme Court's consideration of related appeals. The Department argued for condonation of delay based on previous Supreme Court decisions emphasizing the need to consider the State's collective cause and bureaucratic delays. However, the opposing Advocate contended that the delay was not due to bureaucratic reasons and cited Tribunal decisions stating that circumstances arising after the limitation period cannot constitute sufficient cause for condonation of delay. The Tribunal concurred, emphasizing that the delay was not due to the slow functioning of the department and dismissed the application for condonation of delay, consequently dismissing the appeal as well.