COD clearance, delay condonation, and stay relief granted where service tax on Interconnection Usage Charges was found not immediately payable.

Production of COD clearance led to recall of the earlier dismissal and restoration of the appeal to its original number. The 85-day delay in filing was condoned on the reasons stated in the application. On the stay request, the Tribunal relied on the 12-3-2007 circular to treat service tax on Interconnection Usage Charges as not applicable prior to the effective date of the amended telecommunication service, so pre-deposit of the demanded tax and penalties was not required at that stage. Restoration was allowed, delay condoned, pre-deposit waived, and the matter was listed for hearing.

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Issues: Whether the appeal deserved restoration on production of COD clearance, whether the delay of 85 days in filing the appeal should be condoned, and whether pre-deposit of service tax and penalties on Interconnection Usage Charges should be waived.

Analysis: The COD clearance having been produced, the earlier order dismissing the appeal for want of such clearance was recalled and the appeal was restored to its original number. The delay in filing the appeal was accepted on the reasons stated and was condoned. On the stay application, the circular dated 12-3-2007 was relied upon to hold that service tax was not applicable on Interconnection Usage Charges prior to the effective date of the amended telecommunication service, and that pre-deposit of the demanded tax and penalties was not warranted at this stage.

Outcome: Restoration allowed, delay condoned, and pre-deposit waived; stay petition allowed and the appeal directed to be listed for hearing.

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