Condonation of delay and waiver of penalty pre-deposit granted after illness-based explanation and full service tax payment.

A 14-day delay in filing the appeal was condoned because the proprietor's illness was supported by a medical certificate and treated as a justifiable cause. Waiver of pre-deposit and stay of recovery of penalties under the Finance Act, 1994 were also granted because the appellant had already deposited the full service tax and interest liability during adjudication. The stay operated until disposal of the appeal, leaving the merits to be decided separately.

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Issues: (i) Whether delay of 14 days in filing the appeal should be condoned; (ii) Whether the appellant was entitled to waiver of pre-deposit and stay of recovery of penalties imposed under the Finance Act, 1994.

Issue (i): Whether delay of 14 days in filing the appeal should be condoned.

Analysis: The delay was explained on the ground of illness of the proprietor, supported by a medical certificate showing treatment during the relevant period. The explanation was accepted as justifiable.

Conclusion: The delay was condoned and the condonation application was allowed.

Issue (ii): Whether the appellant was entitled to waiver of pre-deposit and stay of recovery of penalties imposed under the Finance Act, 1994.

Analysis: The appellant had already deposited the entire service tax and interest liability during adjudication. In view of the full payment of tax and interest, pre-deposit of the penalties was waived and recovery was stayed pending disposal of the appeal.

Conclusion: Waiver of pre-deposit was granted and recovery of the penalties was stayed till disposal of the appeal.

Final Conclusion: Interim relief was granted by condoning the filing delay and by staying recovery of the disputed penalties, while leaving the appeal itself for adjudication on merits.

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