2020 (11) TMI 754 - HC - Service Tax

Maintainability of petition - only point of dispute is that Assessee could not file the Appeal within the prescribed time limit of 4 weeks as granted by the learned Single Judge due to overriding reasons and indulgence is now sought to file the said Appeal before the Commissioner within 4 weeks from now - HELD THAT - The time limit given by the learned Single Judge does not deserve to be extended except subject to the condition of deposit of 50% of the demand under the impugned order dated 27.9.2010. It is directed that subject to deposit of ₹ 1,50,000/- by the Petitioner/Assessee within 4 weeks from today and filing of the Appeal within 4 weeks from today, the Appeal may be heard and decided on merits in accordance with law by the Commissioner of Service Tax (Appeals) - appeal disposed off.

Summary

Issues:
1. Appeal against order dismissing Writ Petition due to alternative remedy available.
2. Request for extension of time limit to file Appeal.
3. Requirement of deposit for delayed Appeal filing.

Analysis:
1. The High Court heard an appeal against the order of a Single Judge dismissing a Writ Petition filed by the Assessee due to an alternative remedy being available before the Commissioner of Service Tax (Appeals). The order imposed a demand of ?3,06,606/- towards Service Tax, including Education Cess, by the Assistant Commissioner. The only contention raised in the intra-court Appeal was the inability of the Assessee to file the Appeal within the prescribed 4-week time limit granted by the Single Judge.

2. The Assessee sought indulgence to file the Appeal before the Commissioner within 4 weeks from the present date due to overriding reasons. The Respondents, represented by the Senior Standing Counsel, argued that no indulgence should be granted as the Assessee had already delayed the filing of the Appeal. The Respondents emphasized that payment or deposit of the demand should be directed to be made by the Assessee.

3. After hearing both parties, the High Court opined that the time limit set by the Single Judge should not be extended without conditions. The Court directed that the Appeal could proceed subject to the deposit of ?1,50,000/- by the Assessee within 4 weeks from the current date and the filing of the Appeal within the same period. The Court further specified that the Appeal would be heard and decided on merits by the Commissioner of Service Tax (Appeals) in accordance with the law. The Writ Appeal was disposed of with this directive, and no costs were awarded. Subsequently, the connected Miscellaneous Petition was also closed as a result of this judgment.