2014 (1) TMI 46 - AT - Service Tax

Condonation of delay - Whether the Commissioner (Appeals) can condone the delay beyond the period of three months in addition to statutory limit of three months for filing the appeal under Section 85 of the Finance Act, 1994 - Held that - Principle has been settled by the Hon ble Supreme Court in the case of Singh Enterprises (2007 (12) TMI 11 - SUPREME COURT OF INDIA). Accordingly, the ld. Commissioner (Appeals) cannot condone the delay beyond three months in addition to the statutory limit of three months for filing the appeal under Section 85 of the Finance Act, 1994 - Decided against assessee.

Summary

Issues:
1. Waiver of pre-deposit of service tax and penalty under Section 78 of the Finance Act, 1994.
2. Late filing of appeal before the Commissioner (Appeals) and the power to condone the delay.

Issue 1: Waiver of Pre-deposit of Service Tax and Penalty
The appellant sought waiver of pre-deposit of service tax amounting to Rs.75,142/- and an equal penalty imposed under Section 78 of the Finance Act, 1994. The Authorized Representative for the appellant argued that the demand arose due to an erroneous calculation of service tax by the Department. However, after hearing both sides, the judge found that the appeal could be disposed of at that stage. The judge concluded that there was no merit in the appeal and accordingly dismissed it, leading to the disposal of the stay petition as well.

Issue 2: Late Filing of Appeal and Power to Condone Delay
The key issue in this case revolved around whether the Commissioner (Appeals) had the authority to condone the delay in filing the appeal beyond the statutory limit of three months under Section 85 of the Finance Act, 1994. The Department's representative argued that the Commissioner (Appeals) had rejected the appeal due to late filing, as the appeal was submitted more than a year after the Order-in-Original was communicated to the appellant. Citing the precedent set by the Hon'ble Supreme Court in the case of Singh Enterprises Vs. CC, Ex., Jamshedpur, the judge concurred with the Department's representative that the Commissioner (Appeals) could not condone the delay beyond three months in addition to the statutory three-month limit for filing the appeal. Consequently, the judge upheld the decision of the Commissioner (Appeals) to reject the appeal based on the late filing.

This judgment from the Appellate Tribunal CESTAT KOLKATA addressed the issues of waiver of pre-deposit of service tax and penalty, as well as the late filing of an appeal and the power of the Commissioner (Appeals) to condone such delays. The decision highlighted the importance of adhering to statutory timelines and legal precedents in matters related to tax disputes and appeals.