2019 (11) TMI 1209 - HC - Service Tax

Permission for withdrawal of appeal - compliance with the pre-deposit - Manpower, Recruitment/Supply Agency Service - non payment of the stated tax liability for the assessment years commencing from the year 2009-2010 till 2013-2014 - HELD THAT - Petitioner prays for permission to withdraw t6he present writ petition to avail the benefit of amnesty scheme floated on 01.09.2019. Appeal dismissed as withdrawn.

Summary

Issues:
1. Dismissal of appeal due to delay in filing
2. Dispute over payment of penalty

Issue 1: Dismissal of appeal due to delay in filing
The judgment pertains to a petitioner, a proprietorship concern registered with Service Tax Authorities, facing a demand of ?1,43,04,248 for non-payment of service tax from 2009-2014. The appeal filed by the petitioner was dismissed by the Commissioner (Appeals) CGST due to a delay of 109 days in filing the statutory appeal. The petitioner had complied with the order by depositing the tax demand, interest, and 25% of the penalty. However, a dispute remained over the payment of the remaining 75% of the penalty. During the hearing, the petitioner's counsel requested to withdraw the writ petition to benefit from an amnesty scheme introduced on 01.09.2019. The court granted permission for withdrawal with the mentioned liberty.

Issue 2: Dispute over payment of penalty
The primary contention in the case was the disagreement regarding the payment of 75% of the penalty amount. The petitioner had already fulfilled the requirements by depositing the tax demand, interest, and a portion of the penalty. However, the dispute persisted concerning the remaining 75% of the penalty. The petitioner, through their counsel, sought permission to withdraw the writ petition to take advantage of an amnesty scheme announced on 01.09.2019. Consequently, the court dismissed the petition as withdrawn with the mentioned liberty, allowing the petitioner to avail of the benefits under the amnesty scheme.

This judgment highlights the importance of timely filing appeals in tax matters to avoid dismissal due to delays. It also showcases the option available to taxpayers to benefit from amnesty schemes to resolve disputes and comply with tax obligations effectively.