2008 (6) TMI 57 - AT - Service Tax

Mailing services - submission of the assessees was that whatever franking charges they have collected from their customers was paid to the postal authorities and thus qualified for reimbursement - case is remitted back to the adjudicating authority for fresh decision after consideration of the evidence to be produced by the appellants in the form of bills/documents evidencing collection of franking charges at actuals from their clients and paying back the same amount to postal authorities

Summary

Issues: Delay in preferring the appeal, waiver of pre-deposit, interpretation of taxable services, production of evidence, remand for fresh decision.

Delay in Preferring the Appeal:
The Tribunal condoned a delay of 35 days in preferring the appeal after considering the explanation provided. The delay was attributed to the consultant going abroad for work, advising the appellants to re-agitate the issue before the Commissioner (Appeals), and subsequently being directed to file an appeal before the Tribunal. The Tribunal found the explanation satisfactory and proceeded with the appeal.

Waiver of Pre-deposit:
Upon hearing both sides, the Tribunal decided to waive the pre-deposit of service tax and education cess, along with penalties and interest under relevant sections of the Finance Act, 1994. The Tribunal opted to dispose of the appeal at this stage after considering the waiver of pre-deposit.

Interpretation of Taxable Services and Production of Evidence:
The appellants provided taxable mailing services and argued that the franking charges collected were paid to postal authorities, making them eligible for reimbursement. Despite the lower appellate authority granting time for the production of evidence, the appellants initially failed to provide the necessary documentation. However, they later submitted the required evidence. In the interest of justice, the Tribunal set aside the impugned order and remitted the case back to the adjudicating authority for a fresh decision based on the evidence to be produced by the appellants.

Remand for Fresh Decision:
The Tribunal allowed the appeal by way of remand, directing the adjudicating authority to reconsider the case after examining the evidence to be submitted by the appellants in the form of bills and documents. The adjudicating authority was instructed to pass fresh orders after providing a reasonable opportunity for the appellants to present their defense.

This comprehensive analysis covers the issues of delay in preferring the appeal, waiver of pre-deposit, interpretation of taxable services, production of evidence, and the remand for a fresh decision as addressed in the legal judgment by the Appellate Tribunal CESTAT MUMBAI.