2009 (2) TMI 178 - AT - Service Tax

Cenvat Credit Input Services held that - It is necessity of law that the quasi-judicial authorities should pass a reasoned and speaking order so that the orders shall see the light of the day and meet scrutiny. It is needless to mention that reason is heart beat of justice. Therefore this matter has to go back to the learned adjudicating authority to clearly lay down in the order as to charges levelled against the respondent, factual aspects including the nature of activity carried out by the respondent, pleadings of the respondent, manner of examination, evidence tested, reason of decision and the decision of that Authority by a speaking order. If such due process of law is followed granting fair opportunity of hearing, there may not be grievance of Revenue matter remanded.

Summary

Issues:
1. Lack of appropriate classification of service by the authority below.
2. Non-reasoned and non-speaking order passed by the Commissioner (Appeals).

Analysis:
1. The Appellate Tribunal noted that the order of the authority below did not adequately depict the nature of the activity carried out by the Respondent for proper classification of the service. The Revenue argued that the show-cause notice had unambiguously leveled charges, and it was the duty of the Authority to provide a speaking order clarifying the nature of the activity. The Tribunal emphasized the importance of passing reasoned and speaking orders to ensure justice. It was deemed necessary for the adjudicating authority to clearly outline the charges, factual aspects, nature of activity, evidence tested, and reasons for the decision in a speaking order. The lack of a detailed examination by the authorities below necessitated the matter to be remanded for proper consideration following the principles of natural justice.

2. The Tribunal also addressed the issue of a non-reasoned and non-speaking order passed by the Commissioner (Appeals). It was emphasized that a reasoned order is essential for justice to prevail. The Tribunal highlighted that reason is the heart beat of justice, indicating the significance of providing clear justifications for decisions. The matter was remanded to the adjudicating authority to ensure a fair opportunity for hearing and to lay down the charges, factual aspects, nature of activity, evidence tested, and reasons for the decision in a speaking order. By following due process and granting a fair hearing, the Tribunal aimed to prevent grievances from arising, particularly from the Revenue.

In conclusion, the Appellate Tribunal remanded the appeal to the adjudicating authority for expeditious disposal of the matter, emphasizing the importance of providing reasoned and speaking orders that address all relevant aspects of the case.