2012 (9) TMI 563 - AT - Service Tax

Refund of Service Tax claimed by the service providers - Held that - The refund of duty or any other sum due to an assessee should not be denied for mere technical or procedural lapses if it is otherwise due to substantially on merits - as no reasoning has been given by the Revisionary authority as to how the refunds are denied only for technical or procedural lapses the impugned orders is set aside with direction to the authorities to come to a conclusion after recording reasoning, on following the principles of natural justice.

Summary

Issues Involved:
Refund of service tax paid by service providers and availed as credit by respondents.

Analysis:
The appeals filed by the Revenue against certain orders in revision were disposed of collectively since they raised the same issue. The issue pertained to the refund of service tax paid by service providers and utilized as credit by the respondents. The adjudicating authority had initially allowed the refund claims, which were later revised by the Commissioner under the provisions of Section 84 of the Finance Act, 1994. The Commissioner upheld the original orders without providing detailed reasoning for the decision. The lack of reasoning in the revisionary order was noted by the Tribunal, which emphasized the importance of providing justification for decisions, especially when denying refunds. The Tribunal highlighted the need for a clear rationale behind upholding or rejecting refund claims, emphasizing the principles of natural justice. Consequently, the Tribunal set aside the impugned orders and directed the authorities to reach a conclusion after recording proper reasoning, ensuring adherence to the principles of natural justice. The appeals were allowed by way of remand for further proceedings.