2023 (2) TMI 1286 - AT - Service Tax

Service Tax Demand on Property Rent Overturned Due to Inadequate Findings; Case Sent Back for Detailed Review.

The Tribunal set aside the impugned order confirming a service tax demand of Rs. 5,22,09,361/- on renting immovable property, citing inadequate findings ... Violation of principles of natural justice - non-speaking adjudication order - though the said order has recorded the submissions made by the appellant in great detail, but no findings were recorded therein countering the submissions made in the reply to the show cause notice as well as during the course of adjudication proceedings - HELD THAT:- It is found that the submissions made by the appellant during the course of adjudication proceedings were recorded therein from pages 19 to 29, but the findings in the impugned order are only confined to few pages, wherein the submissions made by the appellant had not been captured fully for an effective order as contemplated under the statute. Thus, the principle of natural justice have been violated in this case, for which the matter should go back to the original authority for a proper fact finding on the issues involved in this appeal. The appeal is allowed by way of remand to the original authority for deciding the issues involved in this case. Issues: Determination of liability for payment of service tax on renting of immovable property.The appeal challenged an order confirming a service tax demand of Rs. 5,22,09,361/-, along with interest and penalties, related to the taxable entry of renting immovable property. The appellant argued that the adjudication order did not provide findings countering their submissions adequately, requesting a remand for proper fact-finding. The Revenue representative reiterated the findings in the impugned order. The Tribunal noted that though the appellant's submissions were detailed, the impugned order's findings were limited, violating principles of natural justice. Consequently, the Tribunal set aside the order, allowing the appeal by remanding the case to the original authority for a comprehensive fact-finding on the issues. The original authority was directed to consider all appellant submissions, provide a personal hearing, and address the issues effectively for a meaningful adjudication order. The appeal was allowed by way of remand.