2018 (8) TMI 1008 - AT - Service Tax

Principles of Natural Justice - SCN was not served on the appellant - Held that - The impugned order has been passed ex parte without affording the opportunity of hearing to the appellant and consequently, the principles of natural justice has been violated - case should be remanded back to the original authority with a direction to pass a fresh de novo order after following the principles of natural justice and after giving an opportunity to the appellant to produce their documents which they intend to rely upon - Appeal allowed by way of remand.

Summary

Issues:
1. Early hearing petition for appeal.
2. Show-cause notice not received by the appellant.
3. Violation of principles of natural justice in passing the ex parte order.

Analysis:
1. The appellant filed an application for early hearing of the appeal, contending that the impugned order was passed without them receiving the show-cause notice, presenting their case, and submitting a reply. The Tribunal allowed the early hearing petition due to the narrow compass of the issue and decided to dispose of the appeal itself with the consent of both parties.

2. The case involved the appellant providing taxable services and making a declaration under the Voluntary Compliance Encouragement Scheme, 2013. The Department found that the appellant had provided services to certain entities even before the declared period. Despite multiple summons and opportunities, the appellant failed to produce certain documents and did not receive the show-cause notice. The Commissioner confirmed the demand ex parte, leading to the present appeal.

3. The Tribunal heard both sides and observed that the impugned order was passed ex parte without giving the appellant an opportunity to be heard, thereby violating the principles of natural justice. Consequently, the Tribunal set aside the order and remanded the case back to the original authority with directions to pass a fresh order after affording the appellant an opportunity to present their documents and comply with the principles of natural justice. The appeal was allowed by way of remand, emphasizing the importance of due process and fair hearing in legal proceedings.