2012 (2) TMI 455 - HC - Service Tax

Natural justice - pre-deposit - order was passed without giving an opportunity of hearing to the writ petitioner and the writ petitioner had no knowledge of the date when this matter was taken for consideration before the Commissioner (Appeals) - Held that - merely because the petitioner was not given opportunity of being heard, the petition is allowed - decided in favor of petitioner.

Summary

Issues:
1. Lack of opportunity of hearing and knowledge of hearing date.
2. Requirement of pre-deposit for granting appeal.

Analysis:
1. The petitioner challenged an order directing them to deposit 50% of the confirmed demand during the pendency of the appeal, as the Commissioner (Appeals) found no mention of potential loss in the stay application. The petitioner argued lack of hearing opportunity and unawareness of the hearing date. The respondents contended that the stay petition did not establish grounds for the demand stay. The petitioner highlighted the absence of a provision for pre-deposit in the Finance Act, 1994.

2. The Court acknowledged the petitioner's concerns regarding the lack of hearing opportunity and unawareness of the hearing date. Consequently, the Court allowed the writ petition, setting aside the order and instructing the Commissioner (Appeals) to issue a new order after granting a hearing opportunity to the petitioner. The Court emphasized considering all parties' contentions and instructed the Commissioner to issue a new order within one month of receiving the certified copy of the judgment.