Religious congregation services and absence of show cause notice can render service tax action unsustainable.

Pandal and shamiana services used for a Nirankari congregation were treated as falling within the protection of the service tax circular for pure religious ceremonies and congregations, so the services were not liable to service tax on that basis. An adjudication order passed without prior issuance of a show cause notice was considered fundamentally defective, non est, and unsustainable in law for breach of fair procedure. The appellate order in favour of the assessee was therefore upheld, and no interference was warranted.

---

---

Issues: (i) whether pandal and shamiana services provided for the Nirankari congregation fell within the scope of the Board circular exempting services used for pure religious ceremonies and congregations from service tax; and (ii) whether an adjudication order passed without issuance of a show cause notice was sustainable.

Issue (i): whether pandal and shamiana services provided for the Nirankari congregation fell within the scope of the Board circular exempting services used for pure religious ceremonies and congregations from service tax.

Analysis: The service was examined in the context of Board Circular No. 80/2004-S.T., which clarified that pandal and shamiana services used for pure religious ceremonies and congregations, such as worship of gods and goddesses, would not attract service tax. The service recipient's gathering was treated as spiritual in nature and the appellate authority had found it to be covered by the circular.

Conclusion: The service was held to fall within the protection of the circular and was not liable to service tax on that ground.

Issue (ii): whether an adjudication order passed without issuance of a show cause notice was sustainable.

Analysis: An adjudication made without prior show cause notice was treated as fundamentally defective and contrary to the requirements of fair procedure. The absence of notice rendered the primary order unsustainable in law and non est, leaving no valid basis for appellate interference.

Conclusion: The order was held to be unsustainable and non est for want of show cause notice.

Final Conclusion: The appellate order in favour of the assessee was upheld and the revenue challenge failed, with no interference warranted.

Ratio Decidendi: An adjudication order passed without a show cause notice is void and cannot be sustained, and service rendered for a qualifying religious congregation falls within the protection of the applicable service tax circular.

---