Fresh evidence and limitation in cancelled-ticket service tax dispute sent back for reconsideration

Additional documents supporting the claim that no service tax was charged on cancelled tickets were produced only at the appellate stage, leaving the existing record insufficient for final decision on merits. The appellate authority was therefore directed to reconsider the evidence, examine the claim afresh, and re-adjudicate the limitation issue alongside the substantive tax question. The matter was remanded to the Commissioner (Appeals) for a fresh decision after granting an opportunity of hearing.

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Issues: Whether the matter should be remanded for fresh consideration in view of the additional documents produced to support the claim that no service tax was charged on cancelled tickets and whether the question of limitation should also be reconsidered.

Analysis: The material placed showed that the appellant sought to justify the adjustment of service tax paid on cancelled tickets by relying on documents and certificates that had not been produced before the first appellate authority. In these circumstances, the existing record was considered insufficient for final adjudication on merits. The appropriate course was to permit consideration of the fresh material by the appellate authority and to allow the limitation issue to be examined afresh along with the merits.

Conclusion: The matter was remanded to the Commissioner (Appeals) for fresh decision after granting opportunity of hearing and consideration of the evidence.

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