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TMI Blog2023 (1) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... Application for condoning the delay in filing an appeal no. S.T./ 85862/18. 3. The Additional Commissioner had imposed service tax liability of Rs.25,79,320/- upon the Petitioner along with interest and a penalty of Rs. 4,30,000/-under section 77 of the Finance Act, 1994 and a penalty of Rs. 25,79,320/- under section 78 of the Act of 1994. The demand of service tax arose as the Petitioner-Central Railway had provided space to various agencies for advertisement in the premises owned by it and provided time slot for advertising at different railway stations in their public announcement system. The Commissioner held that this activity is a taxable service under the category of sale of space or time for advertisement under section 65 (105) (z ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t will be presumed that the Respondent does not have objection to the prayer for condonation of delay and the Court will proceed to pass appropriate order in that regard. Stand over to 9 January 2023". No reply affidavit is filed and we proceed as per the order dated 13 December 2022. 7. We have gone through the reasons given by the Petitioner for condonation of delay. The Petitioner stated that discussions & deliberation were made in the Cabinet on the representations of the Railways for exemption from service tax liability and as result of the same, an amendment has been introduced in the Act of 1994 by incorporating section 99 in the Finance Bill-2013. This information was circulated to all the Zonal General Managers of the Indian Rail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The explanation given by the Petitioner was a reasonable explanation. 9. Further, either allowing the application for condonation of delay or rejecting the same were not the only options available with the Tribunal. Equities could have been balanced by imposing suitable conditions, which option has not been considered by the Tribunal at all. 10. In light of the above discussion, we are of the opinion that equities in the case can be balanced by granting application for condonation of delay, subject to the Petitioner depositing 25% of the principal amount. 11. The writ petition is allowed in terms of prayer clause (a), subject to the Petitioner depositing 25% of the principal amount in the Tribunal within six weeks from the date order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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