2015 (8) TMI 206 - AT - Service Tax

Tribunal emphasizes procedural fairness in service tax refund appeals, focusing on due process and evidence consideration.

The Tribunal allowed the appeals by remanding the matter back to the Commissioner (Appeals) for verification of document submission and to ensure the ... Denial of refund claim - C&F Charges and Sales Commission (Foreign) - Notification No. 41/2007 dated 06.10.2007 - exemption from service tax - export of goods - Held that:- Authorised Representative (ADC) for the Revenue has no objection for remanding the issue, as no personal hearing was granted by the Commissioner (Appeals) and since it has to be verified whether the appellants produced the said documents before the original adjudicating authority or not - matter is remanded to the first appellate authority for getting the documents verified and to issue an appropriate order, after following the principles of natural justice - Decided in favour of assessee. Issues:Appeals filed for service tax refund on C&F Charges and Sales Commission (Foreign) rejected by Commissioner (Appeals) without considering submitted invoices and without granting a personal hearing.Analysis:The case involved three appeals filed by the appellants regarding refund claims for service tax paid on services like C&F Charges, CHA, and Sales Commission. The original adjudicating authority had sanctioned all three refund claims under Notification No. 41/2007. However, the Commissioner (Appeals) upheld the Orders-in-Original except for the service tax refund related to C&F Charges and Sales Commission (Foreign). The Commissioner (Appeals) rejected the refund claims for these categories citing non-submission of invoices as required by the Notification. The Revenue did not appeal against this decision, making it final. The appellants contended that they had indeed submitted invoices before the original adjudicating authority, and they were not granted a personal hearing by the Commissioner (Appeals).The learned Counsel for the appellants argued for the matter to be remanded back to the Commissioner (Appeals) due to the lack of a personal hearing and to verify the submission of documents. The Revenue's Authorised Representative had no objection to remanding the issue for verification of document submission. Consequently, the Tribunal remanded the matter to the first appellate authority to verify the documents and issue an appropriate order after ensuring the principles of natural justice were followed, including granting the appellants a reasonable opportunity for a personal hearing. The appeals were allowed by way of remand, emphasizing the importance of due process and fair consideration of evidence in such matters.In conclusion, the judgment focused on the procedural fairness and adherence to natural justice principles in the decision-making process regarding service tax refund claims. It highlighted the significance of considering all relevant evidence, such as submitted invoices, and granting parties a fair opportunity for a personal hearing before reaching a final decision. The Tribunal's decision to remand the matter underscored the importance of ensuring a thorough and just review of the case before making a conclusive ruling.