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2017 (10) TMI 85 - AT - Service TaxJurisdiction of Commissioner (Appeals) - Power to remand - Whether the learned Commissioner (Appeals) vide the impugned order have rightly remanded the matter to the Deputy Commissioner to hear the respondent-assessee and dispose of the objections with respect to the rebate claim in accordance with law? Held that - the Hon ble Gujarat High Court in the case of Commissioner of Service Tax Vs Associated Hotels Ltd. 2014 (4) TMI 406 - GUJARAT HIGH COURT have held that Sub-section (4) of section 85 itself contains the width of the power of the Commissioner (Appeals) in hearing the proceedings of appeal under section 85. The scope of such powers flowing from sub-section 85(4) therefore cannot be curtailed by any reference to sub-section (5) of section 85 of the Finance Act 1994 - decided against Revenue.
Issues:
1. Whether the Commissioner (Appeals) rightly remanded the matter for hearing the rebate claim objections in accordance with law. Analysis: The appeal was filed by the Revenue against an Order-in-Appeal passed by the Commissioner of Central Excise & Customs. The primary issue revolved around the correctness of the remand order by the Commissioner (Appeals) concerning the rebate claim objections. The Commissioner (Appeals) found that the rebate claim was rejected without providing the appellant a fair opportunity to present their case, emphasizing the violation of principles of natural justice. It was noted that the appellant fulfilled the necessary conditions for the rebate claim under relevant rules and that the adjudicating authority's decision lacked proper justification and examination. The Commissioner (Appeals) directed a de-novo proceeding by the adjudicating authority to reevaluate the rebate claim in compliance with the applicable regulations and principles of natural justice. The Order-in-Original was an ex-parte decision as the respondent-assessee did not appear before the Deputy Commissioner, leading to the Commissioner (Appeals) remanding the matter for further examination on the classification of services exported and the admissibility of the rebate claim. Reference was made to a judgment by the Gujarat High Court, emphasizing the Commissioner (Appeals)'s authority to remand proceedings when necessary. The Tribunal found that the issue at hand aligned with the Gujarat High Court's ruling, which was also supported by previous decisions. Consequently, the Tribunal dismissed the appeal and instructed the Adjudicating authority to issue a reasoned order as directed by the Commissioner (Appeals) after granting a hearing to the assessee within a specified timeframe. The respondent-assessee was directed to appear before the Original authority with a copy of the Tribunal's order to seek a hearing opportunity. In conclusion, the Tribunal upheld the remand decision by the Commissioner (Appeals) regarding the rebate claim objections, emphasizing the importance of following due process and the principles of natural justice in adjudicative proceedings. The judgment highlighted the authority of the Commissioner (Appeals) to remand matters for proper examination and decision-making, as supported by legal precedents and relevant regulations. The Tribunal's directive for a reasoned order and a hearing opportunity for the assessee aimed to ensure a fair and thorough evaluation of the rebate claim in accordance with the law.
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