2013 (1) TMI 298 - AT - Service Tax

Condonation of delay - Delay of 29 days - Waiver of pre-deposit - Commission paid to the foreign agents - Signatory director of the applicant company was abroad during the time when the orders were received from the superintendent - Held that - Appellant has paid of the entire amount of the service tax liability along with interest. Hence allow the application for the waiver of the pre-deposit and condone the delay

Summary

Issues:
Delay in filing the appeal before the Tribunal, Condonation of delay, Service tax liability, Commission paid to foreign agents, Waiver of pre-deposit, Stay of recovery.

Delay in filing the appeal before the Tribunal:
The judgment addresses the application for condonation of delay in filing the appeal belatedly before the Tribunal. The appellant's signatory director was abroad when the orders were received, and it was argued that they were unaware of the order. An affidavit was filed to support this claim. The Tribunal, after perusing the affidavit, found that the applicant had made a case for condoning the delay and allowed the application, directing the registry to take on record the stay petition and appeal.

Service tax liability:
The appellant had already deposited the entire amount of the service tax liability along with interest. Both the appellant's counsel and the Standing Counsel for the Department confirmed this fact. Given the payment of the entire service tax liability, the Tribunal considered the issue of service tax liability resolved.

Commission paid to foreign agents:
The main issue in the case revolved around the commission paid to foreign agents both before and after a specific date. The Tribunal noted that the appellant had paid the entire service tax liability and interest. As a result, the Tribunal allowed the application for the waiver of the pre-deposit of the remaining amounts involved and stayed the recovery of those amounts until the appeal was disposed of.

Waiver of pre-deposit and Stay of recovery:
Considering that the appellant had cleared the service tax liability and interest, the Tribunal granted the waiver of the pre-deposit of the balance amounts and stayed the recovery of those amounts until the appeal's final disposal. This decision was made in light of the appellant's compliance with the service tax payment, ensuring that the appellant would not face immediate financial burden pending the appeal process.

This judgment from the Appellate Tribunal CESTAT, Ahmedabad, dealt with various aspects, including the delay in filing the appeal, service tax liability, payment made by the appellant, issues related to commission paid to foreign agents, waiver of pre-deposit, and stay of recovery. The Tribunal considered the circumstances surrounding the delay in filing the appeal, the payment of service tax liability, and the main issue of commission payments. Ultimately, the Tribunal allowed the application for condonation of delay, waived the pre-deposit of remaining amounts, and stayed the recovery pending the appeal's disposal.