2021 (1) TMI 860 - HC - Service Tax

High Court quashes Order-in-Original, orders fresh hearing, stresses procedural fairness

The High Court set aside the challenged Order-in-Original No.15/2015 and directed the Commissioner of Central Excise to conduct a fresh hearing for the ... Opportunity of personal hearing - right to be heard - setting aside and remand for fresh adjudication - direction to decide within specified timeOpportunity of personal hearing - right to be heard - setting aside and remand for fresh adjudication - Impugned Order-in-Original No.15/2015 (ST) dated 19.11.2015 set aside and matter remitted for fresh decision after affording personal hearing to the petitioner. - HELD THAT: - The petitioner challenged the impugned order on the ground that no opportunity of personal hearing had been afforded. The respondent received instructions offering to re-hear the matter afresh after giving personal hearing and produced the instruction dated 27.09.2016. In view of the absence of a personal hearing and the departmental willingness to re-hear, the Court set aside the earlier order and remitted the matter to the respondent for fresh adjudication, directing that the petitioner be given an opportunity of personal hearing and an opportunity to file a reply and to cooperate in the proceedings. The Court further directed expeditious disposal by prescribing a three-month time-period for disposal from receipt of the order copy, given that the dispute relates to the years 2009 to 2014.Order set aside; matter remitted for fresh decision after affording personal hearing; petitioner to file reply; respondent to decide within three months.Final Conclusion: The writ petition is disposed by setting aside the impugned order and remitting the matter for fresh adjudication after affording personal hearing to the petitioner, with directions for filing of reply and disposal within three months; no costs. Issues:Challenge to Order-in-Original No.15/2015 due to lack of personal hearing opportunity.Analysis:The petitioner challenged Order-in-Original No.15/2015 issued by the Commissioner of Central Excise, Chennai III Commissionerate, primarily on the ground that no personal hearing opportunity was provided before passing the impugned order. The respondent, represented by Mr. A.P. Srinivas, acknowledged receipt of an instruction dated 27.09.2016 from the respondent office, expressing willingness to re-hear the matter after granting a personal hearing to the petitioner. A copy of the instruction letter was submitted as evidence.The High Court, in response to the submissions, set aside the impugned Order-in-Original No.15/2015 dated 19.11.2015 and remitted the case back to the respondent for issuing a fresh order post a personal hearing opportunity to the petitioner. Noting that the dispute relates to the years 2009 to 2014, the respondent Commissioner of Central Excise was directed to conclude the proceedings within three months from the receipt of the court's order. The petitioner was instructed to submit a reply and cooperate with the respondent during the proceedings.Consequently, the Writ Petition was disposed of without any costs, and all connected Miscellaneous Petitions were closed. The judgment emphasized the importance of providing a fair opportunity for a personal hearing before passing significant orders, ensuring procedural fairness and adherence to natural justice principles in administrative proceedings.