Appeal delay condoned, waiver granted, compliance required for further pre-deposit.

The delay in filing the appeal was condoned due to sufficient cause. The waiver of pre-deposit for Service tax and Education Cess was granted, with the appellants required to make a specified deposit within a set timeframe. The appellants' plea of ignorance regarding tax liability was not accepted, and they were ordered to make a further pre-deposit. Compliance would result in a waiver of the remaining dues and a stay of recovery pending appeal decision.

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Issues involved: Condonation of delay in filing appeal, waiver of pre-deposit of Service tax and Education Cess, imposition of penalty under Section 78 of Finance Act, 1994.

Condonation of delay in filing appeal: The appellants filed applications seeking condonation of a 12-day delay in filing the appeal. After hearing both sides, it was found that the appellants were prevented by sufficient cause in filing the appeal in time. The delay was condoned, and the COD application was allowed.

Waiver of pre-deposit of Service tax and Education Cess: The stay application sought waiver of pre-deposit of Service tax amounting to Rs. 4,22,156/- and Education Cess of Rs. 28,407/-, found due from the appellants for security services rendered. The impugned order confirmed the demand of Service tax and imposed a penalty under Section 78 of the Finance Act, 1994.

Imposition of penalty under Section 78 of Finance Act, 1994: The appellants had rendered taxable services during the material period but failed to discharge the tax liability even after being registered with the Department. The appellants claimed ignorance of the tax liability as the reason for non-payment. However, this plea was not raised before the lower authority. Considering the deposit of Rs. 13,602/- already made by the appellants, it was ordered for them to pre-deposit a further amount of Rs. 2,00,000/- within three weeks. Compliance was to be reported by a specified date, upon which there would be a waiver of pre-deposit of the balance dues and a stay of recovery pending the decision in the appeal.

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