2014 (7) TMI 749 - AT - Service Tax

Denial of request of rectification of mistake - recovery of service tax, interest and penalty - construction of commercial and residential complex - assessee was informed that, in the absence of any appeal filed against the Joint Commissioner s Order-in-Original No. 18/2008 dated 26.3.2008 within the time limit of 90 days from the date of receipt of the order prescribed under the Statute and in the absence of any modification of the said order, amounts confirmed as payable therein are liable to be paid by you. - Held that - the appellant had not disputed any of the issues as stated by the Additional Commissioner in his letter dt. 8.12.2011. So, it is evident that the appellant had not filed appeal against Order-in-Original dated 26.2.2008. - Therefore there is no reason to interfere with the order of Commissioner (Appeals) - Decided against assessee.

Summary

Issues:
1. Stay application and appeal hearing in absence of the applicant.
2. Confirmation of tax demand for construction services.
3. Rejection of appeal by Commissioner (Appeals) regarding rectification of mistake and penalty waiver request.

Analysis:
1. The judgment addresses the situation where the applicant did not appear despite notice, and there was no application for adjournment. The Tribunal proceeded with the stay application and appeal hearing based on previous adjournments. The Tribunal decided to consider the appeal during the stay petition hearing, as suggested by the Ld. AR on behalf of Revenue.

2. The applicants were involved in the construction of commercial and residential complexes. The Joint Commissioner confirmed tax demands for different construction services along with interest and penalties. Despite correspondence with the department, no appeal was filed against the Order-in-Original. The Commissioner (Appeals) rejected the appeal, citing procedural issues related to refund application and rectification of mistake under the Finance Act, 1994.

3. The appellant raised concerns about the rejection of the plea for rectification of mistake without proper hearing and the Commissioner (Appeals) not considering the request for penalty waiver. However, the Tribunal observed that the appellant did not dispute the issues mentioned in the Additional Commissioner's letter. Since no appeal was filed against the Order-in-Original, the Tribunal upheld the decision of the Commissioner (Appeals) and rejected the appellant's appeal. The stay application was also disposed of accordingly.