2022 (9) TMI 1058 - AT - Service Tax

Validity of adjudication order - reasonable opportunity of hearing to the appellant not provided - principles of natural justice - HELD THAT - The original authority at paragraph 5.1 in the adjudication order dated 07.04.2017 has stated that he is taking up the matter for adjudication and passing the order ex-parte inasmuch as the appellant did not appear for the personal hearing fixed on several dates - it transpires that the principles of natural justice have not been properly followed, while passing both the adjudication as well as the impugned order by the lower authorities. Hence, under such facts and circumstances of the case, we are of the considered view that the matter should go back to the original authority for fresh adjudication of the dispute. Matter remanded to the original authority for fresh adjudication, and for that purpose, the adjudicating authority should examine the evidences, including the judgements relied upon by the learned Advocate for the appellant - the appeal is allowed by way of remand to the original authority.

Summary

Issues: Violation of principles of natural justice in passing an ex-parte adjudication order without affording a reasonable opportunity of hearing to the appellant.

In this case, the appellant appealed before the Appellate Tribunal CESTAT MUMBAI, feeling aggrieved with the impugned order dated 27.02.2018, alleging a violation of the principles of natural justice. The appellant's advocate argued that the original authority had passed the adjudication order ex-parte without giving a fair hearing to the appellant. The advocate cited similar cases where the Tribunal had ruled in favor of the party on identical issues. The advocate requested the matter to be sent back to the original authority for fresh adjudication, considering the principles of natural justice. On the contrary, the authorized representative for Revenue reiterated the findings of the impugned order. After hearing both sides and examining the case records, the Tribunal found that the original authority had indeed passed the order ex-parte without proper adherence to the principles of natural justice. The Tribunal noted that the appellant had filed a writ petition challenging a Circular issued by the CBEC, indicating a lack of fair opportunity for the appellant. Consequently, the Tribunal set aside the impugned order and remanded the matter to the original authority for fresh adjudication. The Tribunal directed the original authority to consider the evidence, including the judgments relied upon by the appellant's advocate, and ensure the appellant is given a fair chance to present their case before a new adjudication.

This judgment highlights the importance of upholding the principles of natural justice in administrative proceedings, emphasizing the right to a fair hearing before decisions are made. The Tribunal's decision to remand the matter for fresh adjudication underscores the significance of procedural fairness in legal proceedings, ensuring that parties have a genuine opportunity to present their case and address any issues raised against them.