2023 (12) TMI 907 - AT - Service Tax

Maintainability of appeal - appeal dismissed on the ground of non-fulfilment of mandatory pre-deposit condition - violation of principles of natural justice - HELD THAT - It is seen that the Appellant has canvassed once again all the details before the Commissioner(Appeals). Even he did not take any trouble to get these facts verified from the office of the adjudicating authority and has mechanically passed this impugned order dismissing the Appeal filed by the Appellant. After observing that gross violation of principles of natural justice has taken place, in the interest of justice, the details is gone through and it is found that the amount of Rs.3,26,322 Rs.29,449/- already stands paid by the appellant before issue of the Show Cause Notice and is more than the pre-deposit equivalent of 10% of the litigated amount. The defect stands cured - the Appeal itself taken for disposal as the issue is in a short compass - matter remanded to the adjudicating authority to go through all the details given in the letters submitted by the Appellant and also grant Personal Hearing and follow principles of natural justice.

Summary

Issues involved:
The judgment deals with the issue of mandatory pre-deposit not fulfilled by the Appellant leading to the dismissal of the Appeal by the Commissioner(Appeals). The violation of principles of natural justice by the adjudicating authority is also a key issue addressed in the judgment.

Mandatory Pre-deposit Issue:
The Commissioner(Appeals) dismissed the Appeal filed by the Appellant due to non-fulfillment of the mandatory pre-deposit condition. The Appellant claimed to have paid Rs.3,26,322/- as Service Tax along with interest before the issuance of the Show Cause Notice. The Appellant argued that this amount should be considered as part of the amount paid during investigation. However, the Commissioner(Appeals) held that the pre-deposit condition was not fulfilled as the Appellant did not respond to the Show Cause Notice or appear for the personal hearing. The adjudicating authority also failed to consider the Appellant's letter dated 30.12.2019, which clearly stated the recalculated Service Tax liability and the payment made, along with supporting documents. This led to a gross violation of principles of natural justice by the adjudicating authority.

Violation of Principles of Natural Justice:
The judgment highlighted the gross violation of principles of natural justice by both the adjudicating authority and the Commissioner(Appeals). The adjudicating authority did not consider the Appellant's letter providing crucial details and documents regarding the payment made before the Show Cause Notice was issued. The Commissioner(Appeals) also failed to verify these facts and mechanically dismissed the Appeal without proper consideration. This disregard for the Appellant's submissions and evidence amounted to a violation of the principles of natural justice.

Decision and Remand:
In light of the violation of principles of natural justice and the Appellant's payment of the required amount before the Show Cause Notice, the Tribunal held that the defect in the pre-deposit stood cured. The Tribunal decided to remand the matter back to the adjudicating authority for a thorough review of the details provided by the Appellant, granting a personal hearing, and ensuring adherence to principles of natural justice. The adjudicating authority was directed to pass a considered decision within four months from the date of the Tribunal's communication.