2016 (9) TMI 1353 - AT - Service Tax

Invalid Service of Show Cause Notices Renders Orders Invalid; Appellant Granted Consequential Benefits

The Tribunal found that the show cause notices were not validly served as required by the provisions of the Act and Rules. Consequently, the impugned ... Service of notice - whether the adjudication order is tenable for want of satisfactory service of the show cause notice? - Held that: - the show cause notices have not been validly served as required under the provisions of the Act read with the Rules thereunder. Accordingly, the impugned orders are not tenable and the same are set aside - appeal allowed - decided in favor of appellant. Issues involved: Validity of service of show cause noticeAnalysis:The main issue in this appeal pertains to the validity of the adjudication order due to unsatisfactory service of the show cause notice. The appellant argued that neither the show cause notice nor further notices of personal hearing nor the order in original were served upon them. It was only in June 2015 that the appellant became aware of the disputed demand upon receiving a reminder from the Revenue. The appellant contended that the show cause notice was dispatched through Yes Courier Service, but they did not receive it. The Order-in-Original was also dispatched through the same courier service but was returned undelivered. The Adjudicating Authority did not record any satisfaction of service of the show cause notice before passing an ex parte order.Upon hearing the parties and considering the contentions, the Tribunal found that the show cause notices were not validly served as required by the provisions of the Act and Rules. Consequently, the impugned orders were deemed not tenable and were set aside. The appellant was granted entitlement to consequential benefits, if any, in accordance with the law. The miscellaneous application for early hearing was also disposed of. The judgment was pronounced in open court by the Member (J) Shri Anil Choudhary.This detailed analysis highlights the crucial aspect of the case concerning the validity of service of the show cause notice, the arguments presented by the appellant, the findings of the Tribunal, and the ultimate decision rendered in favor of the appellant due to the lack of valid service of the notice.