2017 (10) TMI 1060 - HC - Service Tax

Maintainability of petition - alternative remedy of appeal - the petitioner has by-passed the appellate remedy and filed writ petition on the only ground that the impugned order has been passed in violation of the principles of the natural justice without affording an opportunity of personal hearing to the petitioner - Held that - when the petitioner has filed the appeal giving a particular address, they are entitled for notice being served on the said address and since, the intimation did not reach them, they did not appear for the personal hearing and therefore, the respondents have proceeded exparte - This Court is of the view that the petitioner should be afforded an opportunity of personal hearing by issuance of notice to the present address at Armenian Street and the appellate authority shall hear the petitioner in person - petition allowed by way of remand.

Summary

Issues Involved:
Impugned order passed in violation of natural justice by not affording personal hearing to the petitioner due to incorrect address for service provided in appeal petition.

Analysis:
The petitioner challenged Order in Appeal No.689/2016 (STA-I) dated 20.12.2016, alleging a violation of natural justice as no personal hearing was granted. It was acknowledged that the petitioner had an alternative remedy through appeal under Section 86 of the Finance Act 1994 before CESTAT but opted for a writ petition solely on the ground of lack of personal hearing opportunity. The issue arose as the notice for personal hearing was sent to an old address where the petitioner no longer conducted business, having shifted to a new address. The appeal form clearly indicated the new address, necessitating the notice to be served there. The written instructions confirmed the notice was erroneously sent to the old address, resulting in the petitioner missing the hearing and the proceedings turning ex parte.

The Court recognized the unique circumstances and directed that the petitioner be granted a personal hearing by issuing a notice to the correct address. It was emphasized that since the appeal form specified the new address, the notice should have been served accordingly. Consequently, the impugned order was set aside, and the matter was remanded for fresh consideration. The appellate authority was instructed to issue a notice for personal hearing to the petitioner's current address at Armenian Street, Chennai, hear the petitioner in person, and make a decision based on merits and in compliance with the law. The judgment concluded by stating that no costs were to be incurred, and connected miscellaneous petitions were closed.