2009 (9) TMI 332 - AT - Service Tax

Tour operator service and business auxiliary service- Service tax liability of the appellants in regards the services rendered under the category of Tour Operator Service and some demands under the category of Business Auxiliary Service . At the outset, the learned Counsel submits that the order is an ex parte order as the appellant has not filed any reply to the show-cause notice, though time was granted to them by the adjudicating authority to file written submissions. Held that- following the principle of Natural Justice the stay application and appeal are allowed and give the time for filing the reply.

Summary

Issues: Service tax liability of the appellants under 'Tour Operator Service' and 'Business Auxiliary Service'.

The judgment involves a stay petition and appeal against Order-in-Original No. 52/2008 passed by the Commissioner of Service Tax, Bangalore. The key issue is the service tax liability of the appellants for services provided under 'Tour Operator Service' and 'Business Auxiliary Service'. The appellant did not respond to the show-cause notice, leading to the order being ex parte. The appellant was granted time to file a reply but failed to do so. The Jt. CDR confirmed that the appellant did not reply to the notice despite being given sufficient time. After hearing both sides and reviewing the records, the Tribunal decided to dispose of the appeal without pre-deposit, emphasizing the appellant's failure to respond to the show-cause notice. The Tribunal directed the appellant to submit a reply within four weeks and the adjudicating authority to reconsider the issue within two months, ensuring adherence to the principles of 'Natural Justice'. The stay application and appeal were allowed, remanding the case to the original adjudicating authority for further proceedings.