Service tax reconciliation dispute remanded for fresh adjudication, with a 10% deposit directed before further hearing.

A service tax dispute arose from a discrepancy between ST-3 return figures and the debtors' ledger, with the appellant contending that reconciliation materials were not properly examined. The Tribunal found the adjudication incomplete and held that the evidentiary record required fresh consideration, so the matter was remanded for de novo decision. It also accepted the Revenue's request to put the appellant to terms before remand and directed deposit of 10% of the service tax involved as a condition for further hearing, after which a reasonable opportunity of hearing was to be granted.

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Issues: Whether the demand based on the discrepancy between the ST-3 returns and the debtors' ledger required remand for fresh adjudication, and whether a pre-deposit could be directed before such remand.

Analysis: The dispute arose from an alleged short-payment of service tax on the basis of difference between the taxable value disclosed in the ST-3 returns and the entries in the debtors' ledger. The record showed that opportunities had been granted before the adjudicating authority, but the appellant claimed that reconciliation materials and supporting documents had not been properly considered. The Tribunal found that the matter had not been properly adjudicated because the appellant had not fully participated and the evidentiary position required fresh examination. At the same time, the Revenue's request that the appellant be put to terms before remand was found reasonable, and the offered deposit was accepted.

Conclusion: The matter was remanded to the adjudicating authority for fresh decision after the appellant deposited 10% of the service tax involved and was granted a reasonable opportunity of hearing.

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