2018 (9) TMI 28 - AT - Service Tax

Principles of Natural Justice - case of appellant is that Revenue has added the transactions in respect of service and sale on which UPVAT was paid towards consideration for providing services as a result demand is not worked out on the basis of facts - Held that - The impugned order is issued without following the principle of natural justice. Therefore, the same is not sustainable in law - the matter remanded back to the Original Authority with directions to offer an opportunity of personal hearing to the appellant - appeal allowed by way of remand.

Summary

Issues: Appeal against Order-in-Original for service tax demand, lack of opportunity for appellant to present case, principle of natural justice not followed.

In this case, the appellant was issued a show cause notice demanding service tax based on discrepancies between receipts and services reflected in returns. The appellant did not respond to the notice or appear for the hearing, leading to the Original Authority confirming the demand and imposing a penalty. The appellant, through their counsel, argued that they could have proven their case if given the opportunity. The Revenue, represented by the A.R., supported the impugned order. The Tribunal, after considering the arguments, found that the impugned order violated the principle of natural justice by not providing the appellant with a fair hearing. Consequently, the Tribunal set aside the order and remanded the matter to the Original Authority with directions to offer the appellant a personal hearing. The appellant was granted the liberty to raise all issues, submit their books of account, provide written submissions, and appear for the hearing. The appeal was allowed by way of remand, ensuring the appellant's right to present their case and defend against the service tax demand.