2012 (4) TMI 426 - AT - Service Tax

Service Tax liability payable under the category of Man Power Recruitment & Labour Supply Services, and interest thereof and also penalties u/s 77 and 78 Held that - Dismissal of the appeal on the ground that there is no reply filed by the appellant before adjudicating authority and the first appellate authority cannot be accepted reason - if there is no reply filed before adjudicating authority, those submissions made before the appellate authority would be considered as submissions and not additional submissions -assessee is directed to file a reply to the Show Cause Notice within 30 days from the date of Order to the adjudicating authority - in favour of assessee.

Summary

Issues: Stay petition for waiver of pre-deposit of Service Tax, penalties under Sections 76 & 77 of Finance Act, 1994, disagreement on nature of services provided, lack of reply before adjudicating authority, principles of natural justice.

In this judgment by the Appellate Tribunal CESTAT, Ahmedabad, the Stay Petition was filed seeking waiver of pre-deposit of Service Tax amounting to Rs.11,33,130/- along with interest and penalties under Sections 76 & 77 of the Finance Act, 1994. The tax liability was confirmed by the adjudicating authority and upheld by the first appellate authority for the period of September 2005 to October 2006 under the category of Man Power Recruitment & Labour Supply Services. The appellant argued that the agreement was for fabrication of pipes, not for the supply of manpower, supported by the invoices annexed to the appeal memorandum. The lower authorities reiterated their findings, leading to the Tribunal's consideration of the case for disposal. The Tribunal noted the absence of a reply by the appellant before the adjudicating authority, which led to the dismissal of the appeal by the first appellate authority on the grounds of additional submissions. The Tribunal emphasized the importance of natural justice, directing the appellant to file a reply to the Show Cause Notice within 30 days to allow for a re-consideration of the issue by the adjudicating authority. The judgment set aside the impugned order and remanded the matter back to the adjudicating authority to ensure the principles of natural justice are followed, without expressing any opinion on the case's merits, thus allowing the appeal by way of remand.