Abatement of appeal on death of sole appellant ends service tax demand proceedings under procedural rules.

Where the sole appellant died during pendency of a service tax appeal against confirmation of tax and penalty, Rule 22 of the CESTAT (Procedure) Rules required the proceeding to abate because an appeal cannot continue against a deceased person. The consequential tax demand in that appeal also abated, and the matter ended without adjudication on the merits of the demand.

---

---

Issues: Whether the appeal and the corresponding service tax demand could proceed after the death of the sole appellant, and whether the appeal was liable to abate under Rule 22 of the CESTAT (Procedure) Rules.

Analysis: The appellant had died during the pendency of the appeal. The dispute related to confirmation of service tax and penalty against the deceased proprietor. In view of Rule 22 of the CESTAT (Procedure) Rules, the proceeding could not continue against a deceased person, and the appeal was required to abate.

Conclusion: The appeal abated on the death of the appellant, and the demand also abated.

Final Conclusion: The proceedings came to an end without adjudication on the merits of the tax demand, as the appeal abated upon the death of the sole appellant.

Ratio Decidendi: Where the sole appellant dies during the pendency of an appeal concerning tax demand and penalty, the appeal abates under the applicable procedural rule and the consequential demand cannot survive as an enforceable proceeding in that appeal.

---