2011 (3) TMI 918 - AT - Service Tax

Confirmation of demand - Revisionary Authority has issued show-cause notice for reviewing the Order-in-Original passed by the Asst. Commissioner - The appellants herein sought an adjournment of the hearing - Reviewing Authority did not consider the adjournment notice and passed an order without hearing the assessee - Since there is a violation of principles of natural justice, the impugned order is set aside and the matter is remanded back to the Reviewing Authority to re-consider the issue after following principles of natural justice.

Summary

Issues: Violation of principles of natural justice in the confirmation of demand by the Reviewing Authority.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Bangalore, involved a stay petition against the confirmation of demand by the Reviewing Authority. The amounts in question included Service Tax, Interest, and various penalties. The Tribunal noted that the Revisionary Authority had issued a show-cause notice for reviewing the Order-in-Original but failed to consider the adjournment sought by the appellants, leading to a violation of principles of natural justice. Consequently, the Tribunal set aside the impugned order and remanded the matter back to the Reviewing Authority to re-consider the issue after ensuring the principles of natural justice were followed. The appeal and stay petition were disposed of accordingly. The judgment emphasized the importance of adhering to natural justice principles in administrative proceedings to ensure fairness and due process.