Case Law Details
St. John CFS Part Pvt. Ltd. Vs Commissioner of Central Excise (Madras High Court, Madurai Bench)
Taking note of the pendency of the merger proceedings, the parent company namely, M/s.St.John Freight System Limited, deposited the money as directed by the conditional order. The Tribunal has refused to accept such deposit as a proper compliance with conditional order passed, because both the companies had separate service tax registration. It now turns out that the parent company, which has deposited a sum of Rs.20,00,000/- (Rupees Twenty Lakhs only) pursuant to the interim order is under liquidation. The appellant cannot be penalized for the error. The appellant has to be given an opportunity to have its appeal heard on merits.
No doubt, the Tribunal was justified in concluding that the deposit by the parent company, which had a separate service tax registration, cannot be taken as a proper compliance, at the same time, the order of the Tribunal imposing a condition has been complied with an ends, we find that such a rigid view would only result in the appeal being thrown out on a technical ground, thereby, resulting a denial of opportunity to the appellant.
We therefore, direct the payment made by the parent company to be taken as a payment made by the appellant company for the purposes of the compliance with the interim order alone.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This appeal is directed against the final order No.40651/2014 of the Customs, Central Excise and Service Tax Appellate Tribunal, dated 13.10.2014, dismissing the appeal filed by the appellant for non-compliance of the conditions imposed for grant of stay.
2. By an order, dated 14.06.2013, the appellant company was directed to make a pre-deposit of Rs.20,00,000/- (Rupees Twenty Lakhs only) and report compliance on 02.08.2013. At that relevant point of time, an application for merger of the appellant company with M/s.St.John Freight System Limited, was pending.
3. Taking note of the pendency of the merger proceedings, the parent company namely, M/s.St.John Freight System Limited, deposited the money as directed by the conditional order. The Tribunal has refused to accept such deposit as a proper compliance with conditional order passed, because both the companies had separate service tax registration. It now turns out that the parent company, which has deposited a sum of Rs.20,00,000/- (Rupees Twenty Lakhs only) pursuant to the interim order is under liquidation. The appellant cannot be penalized for the error. The appellant has to be given an opportunity to have its appeal heard on merits.
4. No doubt, the Tribunal was justified in concluding that the deposit by the parent company, which had a separate service tax registration, cannot be taken as a proper compliance, at the same time, the order of the Tribunal imposing a condition has been complied with an ends, we find that such a rigid view would only result in the appeal being thrown out on a technical ground, thereby, resulting a denial of opportunity to the appellant.
5. We therefore, direct the payment made by the parent company to be taken as a payment made by the appellant company for the purposes of the compliance with the interim order alone. We therefore, set aside the order of the Tribunal. The appeal is restored to file. The Tribunal is requested to dispose the appeal on merits.
6. With the above direction, this Civil Miscellaneous Appeal is allowed. No costs. Consequently, connected miscellaneous petition is closed.
