2018 (4) TMI 1392 - HC - Service Tax

Service tax liability - ex-parte order of the tribunal - the appellant at no material point of time received any notice of hearing from the Tribunal and in absence of the present appellant the Tribunal has decided the appeal - Held that - Even the order of the Tribunal shows that the appellant was not before the Tribunal and considering the fact that the appellant has deposited the entire duty under question, we are inclined to grant one more opportunity to the appellant - The parties are relegated before the Tribunal - appeal allowed by way of remand.

Summary

Issues:
Service Tax liability on amount paid to Commission Agents for procuring export orders; Absence of appellant during Tribunal hearing; Allegation of non-receipt of hearing notice by appellant.

Service Tax liability on amount paid to Commission Agents for procuring export orders:
The appeal was filed against the Tribunal's order allowing the department's appeal regarding Service Tax liability on the amount paid by the appellant to officers appointed as Commission Agents for procuring export orders. The appellant's advocate argued that the appellant did not receive any notice of hearing from the Tribunal and, therefore, was not present during the appeal proceedings. The respondent's advocate contended that the Tribunal had issued a notice for filing Crossobjection after the department's appeal, but the appellant failed to do so. The appellant's advocate confirmed that the duty under the impugned order had been paid. The Tribunal noted the absence of the appellant during the proceedings and decided to dispose of the appeal due to the narrow compass of the issue. Despite the appellant's claim of not receiving the appeal notice, the Tribunal's order indicated the appellant's absence. The High Court, considering the appellant's payment of the duty and the absence before the Tribunal, quashed the Tribunal's order and directed the parties to appear before the Tribunal for a fresh hearing.

Absence of appellant during Tribunal hearing:
The appellant contended that they did not receive the notice of the appeal, which was not categorically denied by the respondent. The High Court did not delve into this debate but noted the appellant's absence before the Tribunal. Despite the appellant's claim, the High Court granted another opportunity to the appellant due to the payment of the duty under question. The High Court set aside the Tribunal's order, allowing the parties to appear before the Tribunal for a fresh hearing to decide the appeal on its merits.

Allegation of non-receipt of hearing notice by appellant:
The appellant argued that they never received the notice of the appeal, which was not definitively refuted by the respondent. The High Court did not extensively address this issue but acknowledged the absence of the appellant during the Tribunal proceedings. Despite this, the High Court decided to grant the appellant another chance to present their case before the Tribunal, considering the payment of the duty under question. The High Court quashed the Tribunal's order, directing the parties to appear before the Tribunal for a fresh hearing to decide the appeal on its merits.