2017 (11) TMI 1712 - HC - Service Tax

Condonation of delay in filing appeal - appellant filed an appeal before the Commissioner (Appeals) on 30.06.2014 after a delay of more than three months - Section 85(3A) of Finance Act, 1994 - Renting of immovable property service - non-payment of service tax - Held that - The issue with regard to the condonation of delay beyond the period specified in the statute in filing appeal has already been decided by a Full Bench of this Court in State of Haryana Vs. Hindustan Machine Tools Ltd., 2015 (6) TMI 498 - PUNJAB & HARYANA HIGH COURT , wherein it was held that wherever the extent of condonable period is specifically prescribed by a statute, it would not be appropriate even under Articles 226/227 of the Constitution of India to entertain the writ petition so as to breach the express provision in the statute and act contrary to the mandate of the legislature. Further in Patel Brothers Vs. State of Assam and others, 2017 (1) TMI 330 - SUPREME COURT , it has been held by the Apex Court that condonation of delay by invoking Section 5 of the Limitation Act, 1963 when such delay is beyond the prescribed period, is not permissible. Appeal dismissed - decided against appellant.

Summary

Issues:
1. Condonation of delay in filing appeal under Section 85(3A) of the Finance Act 1994.
2. Justification of dismissing the appeal by lower courts despite explanations for delay.
3. Consideration of submissions, documents, and law by the respondents.
4. Dismissal of the case without reviewing the merits.
5. Ignoring findings of the Apex Court in similar cases.
6. Arbitrariness and legality of impugned orders.

Analysis:
1. The appellant, a Director of an institute, was registered for providing renting services under Section 65 of the Finance Act 1994. The appellant received rent for vacant land and parking sites, leading to a service tax liability. Despite explanations for delay, the appeal against the tax imposition was dismissed by the Commissioner (Appeals) and the Tribunal due to exceeding the permissible appeal filing period under Section 85(3A) of the Act.

2. The appellant contended that the delay in filing the appeal was due to organizational formalities, but the Commissioner (Appeals) and the Tribunal upheld the dismissal based on the statutory time limit for appeal filing. The courts did not find sufficient cause for condonation of the delay beyond the prescribed period, leading to the dismissal of the appeal.

3. The appellant argued that the respondents did not consider the submissions, documents, and laws presented. However, the courts upheld the dismissal based on the procedural delay in filing the appeal, emphasizing adherence to statutory timelines over the merits of the case.

4. Despite explanations for the delay being provided by the appellant, the courts focused on the strict interpretation of the statutory appeal filing period, leading to the dismissal of the appeal without delving into the substantive merits of the case.

5. The appellant raised concerns about the lower courts not considering findings of the Apex Court in similar cases. However, the courts primarily focused on the statutory provisions regarding appeal filing timelines, leading to the dismissal of the appeal without considering the broader legal context.

6. The appellant challenged the impugned orders as arbitrary and against the law. However, the courts upheld the dismissal of the appeal based on the statutory provisions governing appeal filing timelines, emphasizing the importance of adhering to legislative intent and statutory requirements in such matters.