2025 (3) TMI 63 - AT - Service Tax

Service Tax Appeal Abates Due to Appellant's Death, No Continuance Application Filed by Heirs Under Rule 22 CESTAT.

M/s. Thirumani Mariappan Versus The Commissioner of CGST & Central Excise, Tirunelveli

The Tribunal held that the appeal filed by the appellant challenging the service tax demand abated due to the appellant's death, as per Rule 22 of the ... Abatement of appeal, on the death of the appellant - short payment of service tax - suppression of value - recovery alongwith penalty - HELD THAT:- The Appellant who was a sole proprietor has died on 31.05.2022 during the pendency of the present appeals. We also find that in terms of Rule 22 of Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982, on the death of the appellant, the proceedings will be abated unless an application is made for continuance of such proceedings by the legal Heirs of the Appellant. In this case, no such application has been received. As the Death has occurred on 31.05.2022, nearly three years passed already. In view of the judgement of the Hon’ble Supreme Court in the case of Shabina Abraham & Ors. Vs. Collector of Central Excise & Customs [2015 (7) TMI 1036 - SUPREME COURT] wherein it has been held that no proceedings can be initiated or continued against a dead person as it amounts to violation of natural justice in as much as the dead person, who is proceeded against is not alive to defend himself. Conclusion - On the death of the appellant, the appeal stands abated and disposed of in terms of Rule 22 of the CESTAT procedure Rules, 1982. Appeal is abted and disposed off. The case involves an appeal filed by M/s. Thirumani Mariappan challenging the order of the Commissioner of Central Excise regarding the payment of service tax under the category of 'Commercial or Industrial Construction Service.' The appellant was accused of suppressing taxable value and underpaying service tax, leading to a demand for payment of Rs. 66,99,807 for the period from October 2007 to March 2012. The appellant claimed to have satisfied the conditions of a notification and was eligible for exemption from paying service tax on 100% of the value of services provided.The Tribunal considered the death of the appellant, Shri Thirumani Thangarajan, during the pendency of the appeal. Rule 22 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 states that proceedings abate upon the death of a party unless an application for continuance is made by the legal heirs. As no such application was received, and more than three years had passed since the appellant's death, the Tribunal found that the appeal stood abated.Citing the judgment in the case of Shabina Abraham & Ors. Vs. Collector of Central Excise & Customs, the Tribunal emphasized that proceedings cannot be initiated or continued against a deceased person as it violates natural justice since the deceased cannot defend themselves. Therefore, the Tribunal held that the appeal stands abated and was disposed of accordingly.In conclusion, the Tribunal found that the appeal abated upon the death of the appellant, in accordance with Rule 22 of the CESTAT Procedure Rules, 1982, and the principles of natural justice preventing proceedings against a deceased person.