Statutory abatement claim and fair hearing requirements led to remand for fresh adjudication after notice of the report.

A claim for 67% abatement under Notification No. 1/2006-S.T. in relation to erection, commissioning or installation service had not been examined by the adjudicating authority. The record also showed that the report obtained by the appellate authority was supplied at the hearing, but the appellant sought time and a further opportunity to respond. In these circumstances, the impugned orders were set aside and the matters were remanded for fresh adjudication after furnishing the report and granting a reasonable opportunity of hearing.

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Issues: Whether the impugned orders could be sustained when the appellant's claim for abatement under Notification No. 1/2006-S.T. had not been considered and the matter had been decided without affording an effective opportunity to meet the report called for by the appellate authority.

Analysis: The claim for benefit of the notification providing 67% abatement in respect of erection, commissioning or installation service was found to be a substantial contention that had not been examined by the adjudicating authority. The record also showed that the report obtained by the appellate authority was furnished to the appellant at the hearing, and the appellant sought time and a further opportunity to respond. In these circumstances, the matters required reconsideration by the appellate authority after supplying the report and granting a reasonable opportunity of hearing. The Tribunal therefore considered it appropriate to dispose of both appeals finally by setting aside the impugned orders and remitting the matters for fresh decision.

Conclusion: The impugned orders were set aside and the appeals were remanded to the Commissioner (Appeals) for fresh adjudication after providing the report and a reasonable opportunity to the appellant.

Final Conclusion: The controversy was not decided on the merits of tax liability, but was sent back for reconsideration in accordance with principles of fair hearing.

Ratio Decidendi: A material claim for statutory abatement that has not been examined, coupled with denial of an effective opportunity to respond to material placed before the appellate authority, warrants remand for fresh adjudication.

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