2013 (5) TMI 512 - AT - Service Tax

Cross-objections filed before Commissioner (Appeals) against service tax demand - whether be treated as an appeal filled? - Held that - Favour in the argument of DR that assessee has not been able to show any provision of law indicating that cross-objection can be filed before Commissioner (Appeals), in lieu of the statutory appeal. If such cross-objections are held to be appeals filed before Commissioner (Appeals), the period of limitation prescribed under law would get circumvented and as such such cross-objections cannot be held to be appeals. As the appellant have not challenged the confirmation of demand of ₹ 2.33 lakhs approximately,they should be directed to deposit the same within a period of eight weeks. At submitted that assessee have already deposited an amount of ₹ 75,000/- The said deposit made by them would be adjusted towards the deposit of ₹ 2.35 lakhs.

Summary

Issues:
1. Appeal against service tax demand of Rs. 2,94,618/-.
2. Cross-objections filed before Commissioner (Appeals).
3. Validity of treating cross-objections as an appeal.
4. Requirement of depositing the confirmed demand amount.

Analysis:
The case involved an appeal against a service tax demand of Rs. 2,94,618/-, where the original adjudicating authority confirmed a demand of Rs. 2,33,782/- and dropped the demand of Rs. 60,836/-. The Revenue appealed against the dropping of a part of the demand and penalties. The Commissioner (Appeals) allowed the Revenue's appeal, leading to the appellant's grievance regarding the cross-objections filed before the Commissioner (Appeals) not being considered as an appeal. The appellant argued that the cross-objections should have been treated as an appeal, and they should have been given an opportunity to be heard during the decision on the Revenue's appeal.

The Revenue contended that the appellant did not file a separate appeal against the confirmed demand within the prescribed period of limitation, and filing cross-objections cannot replace a statutory appeal. The Tribunal agreed with the Revenue's argument, stating that cross-objections cannot be considered as appeals to circumvent the limitation period. As the appellant had not challenged the confirmed demand of Rs. 2.33 lakhs approximately, the Tribunal directed the appellant to deposit the same amount within eight weeks, with a previous deposit of Rs. 75,000/- being adjusted against the total deposit required.

The Tribunal emphasized that the appellant's failure to file a separate appeal against the confirmed demand led to the demand attaining finality. The decision highlighted the importance of adhering to statutory appeal procedures and limitations, ultimately directing the appellant to comply with the deposit requirement. The case was scheduled for compliance verification on a specified date.