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2012 (7) TMI 110 - AT - Service TaxViolation of principle of Natural justice - demand confirmed by Commissioner as a revisionary authority, on revision of the order in original which was in favour of the assessee without waiting for reply of assessee and consideration of his defense - Held that - This is a serious violation of principles of natural justice. Suffice it to say that the reviewing authority should have given sufficient opportunity to the appellant to file the reply and then considered the issue in a proper perspective. Impugned order set aside and assessee is directed to file reply to the show cause notice within stipulated time - Decided in favor of assessee.
Issues: Stay petition for waiver of pre-deposit of service tax, Violation of principles of natural justice
Stay petition for waiver of pre-deposit of service tax: The judgment pertains to a stay petition filed for the waiver of pre-deposit of service tax amounting to Rs. 1,81,397/- confirmed by the Commissioner as a revisionary authority. The Tribunal observed that the appeal itself could be disposed of at that juncture as the issue was narrow. Consequently, the application for the waiver of pre-deposit was allowed, and the appeal was taken up for disposal. Violation of principles of natural justice: The counsel highlighted that the show cause notice was issued on 13.06.2011, and the personal hearing for the appellant was scheduled on 27.06.2011. However, the reviewing authority passed the order without the appellant's appearance, leading to an alleged serious violation of natural justice principles. Upon examining the records, the Tribunal found that the reviewing authority did not wait for the appellant to file a reply before considering the defense, which was deemed a grave violation of natural justice. Consequently, the impugned order was set aside, directing the appellant to file a reply to the show cause notice within four weeks, and for the reviewing authority to grant a personal hearing before reaching a conclusion on the matter, with the appeal remanded to the reviewing authority for further proceedings.
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