Service tax demand fails without a show cause notice, as the defect cannot be cured by adjudication or appeal.

Service tax demand proceedings cannot be sustained where no show cause notice was issued to the assessee, because valid notice is a foundational requirement that goes to the root of the matter. The defect is not cured by the adjudication order or by appellate confirmation, since the demand was initiated without the mandatory notice. The impugned order was therefore held unsustainable and was set aside.

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Issues: Whether the impugned service tax demand could be sustained in the absence of any show cause notice.

Analysis: The record disclosed that no show cause notice had been issued to the appellant. Since initiation of demand proceedings without issuance of notice goes to the root of the matter, the defect could not be cured by the order of adjudication or the appellate confirmation.

Conclusion: The impugned order was held unsustainable and was set aside.

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