2021 (9) TMI 1020 - AT - Service Tax

Principles of natural justice - no Show Cause Notice was issued proposing to reject the refund - appellant was deprived of any opportunity to offer its rebuttal - HELD THAT - The Commissioner (Appeals) having remanded the matter for fresh adjudication after expressing his satisfaction as to the non-following of the principles of audi alteram partem by the Adjudicating Authority, should not have expressed any findings on the issues. The cases are remanded to the file of the Adjudicating Authority, who shall pass a de novo order after following the principles of natural justice and without being influenced by the impugned order of the Commissioner (Appeals). It goes without saying that the Adjudicating Authority shall afford reasonable opportunities to the appellant in passing the de novo order - Appeal allowed by way of remand.

Summary

Issues:
1. Lack of opportunity to offer rebuttal and file documentary evidence due to absence of Show Cause Notice.
2. Commissioner (Appeals) expressing findings on issues after remanding the matter for fresh adjudication.

Analysis:
1. The appellant's representative highlighted the absence of a Show Cause Notice proposing to reject the refund, depriving the appellant of the opportunity to offer a rebuttal or submit supporting documentary evidence. The Commissioner (Appeals) acknowledged the lack of following natural justice principles and remanded the cases for re-examination, directing the appellant to provide their defense and necessary documents. The appellant argued that the Commissioner (Appeals) should not have delved into the merits of the issue from the Orders-in-Original, as the cases were remanded for fresh adjudication. Consequently, the findings by the Commissioner (Appeals) were deemed unsustainable by the appellant.

2. After hearing both parties, the Member (Judicial) opined that the Commissioner (Appeals) should not have expressed any findings on the issues once the matter was remanded for fresh adjudication due to the non-adherence to the principles of natural justice by the Adjudicating Authority. Consequently, the impugned order was set aside to the extent of the Commissioner (Appeals) expressing findings, and the cases were remanded to the Adjudicating Authority. The Adjudicating Authority was instructed to pass a fresh order following natural justice principles without being influenced by the previous order of the Commissioner (Appeals) and ensuring reasonable opportunities for the appellant during the process. Ultimately, the appeals were allowed by way of remand, emphasizing the need for a fair and just procedure in the adjudication process.