2018 (3) TMI 500 - AT - Service Tax

Principles of Natural Justice - Business Support Services - Held that - the appellants have been deprived of natural justice to pursue their case both by way of reply to the SCN and also by representation in personal hearing, as they had shifted their address. Hence without going into the merits, the matter is remanded back to the adjudicating authority for denovo consideration - appeal allowed by way of remand.

Summary

Issues: Amendment of cause title and address, Tax liability on Business Support Services, Deprivation of natural justice due to change of address, Remand of the matter back to adjudicating authority

Amendment of Cause Title and Address:
The department filed a miscellaneous application seeking an amendment of the cause title and address due to a change in jurisdiction. The Tribunal allowed the amendment, noting the change in the department's address and jurisdiction. The amended address was directed to be noted in the relevant form.

Tax Liability on Business Support Services:
The case involved the appellants providing services related to medical insurance data processing, which the department classified as Business Support Services attracting service tax liability. The appellants collected tax from clients but failed to discharge their own tax liability. The adjudication order confirmed a demand against the appellants, leading to an appeal. The Commissioner (Appeals) upheld the original order, prompting the appeal before the Tribunal.

Deprivation of Natural Justice due to Change of Address:
During the hearing, the appellants' advocate highlighted that due to a change in business address, they did not receive notices for adjudication proceedings, leading to an ex-parte adjudication. The appellants paid outstanding amounts upon becoming aware of the issue and requested a remand for proper representation. The Tribunal acknowledged the deprivation of natural justice due to the address change and remanded the matter back to the adjudicating authority for a fresh consideration, ensuring the appellants get opportunities for written replies and personal hearings.

Remand of the Matter back to Adjudicating Authority:
The Tribunal, without delving into the merits of the case, allowed the appeal by remanding the matter back to the adjudicating authority for denovo consideration. The decision aimed to rectify the procedural injustice faced by the appellants and emphasized providing adequate opportunities for representation during the proceedings.

In conclusion, the Tribunal allowed the amendment of the cause title and address, addressed the tax liability issue on Business Support Services, recognized the deprivation of natural justice due to a change in address, and remanded the matter back to the adjudicating authority for a fair consideration, ensuring the appellants' right to proper representation.