2012 (10) TMI 298 - AT - Service Tax

Appellate tribunal grants Stay Petition, directs response to Show Cause Notice, emphasizing natural justice principles.

M/s Singh & Co. Versus Commissioner of Central Excise Vapi

The appellate tribunal granted the Stay Petition for waiver of pre-deposit, allowing the appeal to proceed for adjudication. The central issue involved ... Man Power Recruitment & Supply Agency - service tax demand - Stay Petition for waiver of pre-deposit - Held that:- As the appellant during the pendency of the investigation, has deposited an amount of Rs.10 lakhs and has also not filed any defence reply due to his illness and the adjudicating authority has gone through the Show Cause Notice and the statements to come to conclusion that the appellant is to be saddled with the Service Tax liability of Rs.55,49,649/-, interest thereof and various penalties. Thus as adjudicating authority should have given another chance to the appellant for filing the reply before taking up the matter for disposal the appellant is hereby directed to file the reply to the Show Cause Notice within a period of six weeks from this Order date - in favour of assessee by way of remand. Issues:1. Stay petition for waiver of pre-deposit of amounts involved.2. Service Tax liability on the appellant under the category of Man Power Recruitment & Supply Agency.Stay Petition for Waiver of Pre-deposit:The appellate tribunal allowed the Stay Petition for waiver of pre-deposit of the amounts involved, leading to the consideration of the appeal for disposal. The issue was found to be in a narrow compass, prompting the tribunal to proceed with the appeal's adjudication at that juncture.Service Tax Liability on Man Power Recruitment & Supply Agency:The central issue in this case revolved around the Service Tax liability on the appellant under the category of Man Power Recruitment & Supply Agency. The appellant's Cost Accountant, representing the assessee, highlighted that due to illness, no reply was filed to the Show Cause Notice, resulting in an ex-parte order by the adjudicating authority. The Cost Accountant requested another opportunity to present a reply before the lower authorities, emphasizing that the appellant operates as a job worker, implying no liability.Upon review, it was noted that the appellant had deposited Rs.10 lakhs during the investigation but failed to submit a defense reply. The adjudicating authority, after examining the Show Cause Notice and statements, concluded that the appellant was liable for Service Tax amounting to Rs.55,49,649/-, along with interest and penalties. The tribunal opined that the appellant should have been granted another chance to file a reply before the matter's disposal. Consequently, the tribunal directed the appellant to submit a reply to the Show Cause Notice within six weeks. The adjudicating authority was instructed to evaluate the case on its merits and issue an order following the principles of natural justice, keeping all issues open for adjudication.The appeal was disposed of by way of remand, with a clear indication that no views on the case's merits were expressed, and all issues were left open for further consideration.---