Limitation and natural justice in service tax appeals turn on proper service of the adjudication order and a fair hearing.

For limitation in service tax appellate proceedings, the relevant date is the communication of the adjudication order, and an appeal filed within that period is timely. Where the show cause notice and Order-in-Original are not shown to have been properly served at the appellant's registered address, and no reliable proof of service is produced, the assessee cannot be treated as having been heard effectively. An ex parte adjudication in such circumstances breaches audi alteram partem, so the limitation-based dismissal is unsustainable and the matter must be reconsidered on merits after granting a hearing.

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Issues: (i) whether the appeal before the Commissioner (Appeals) was within limitation; (ii) whether the appellant was denied a sufficient opportunity of hearing and thereby suffered violation of natural justice.

Issue (i): whether the appeal before the Commissioner (Appeals) was within limitation.

Analysis: The period prescribed under section 84(2) of the Finance Act, 1994 runs from the date of communication of the adjudication order. The record showed that the show cause notice and the Order-in-Original were served at an address not established to be the appellant's registered address, no reliable proof of proper service was produced, and the certified copy of the Order-in-Original was received by the appellant only on 25.09.2020. The appeal filed on 09.11.2020 was therefore within the statutory period.

Conclusion: The appeal before the Commissioner (Appeals) was within limitation, in favour of the appellant.

Issue (ii): whether the appellant was denied a sufficient opportunity of hearing and thereby suffered violation of natural justice.

Analysis: As the show cause notice and the Order-in-Original were not duly served on the appellant, the adjudication proceeded ex parte. The absence of proper service deprived the appellant of an effective opportunity to present his defence, amounting to breach of audi alteram partem.

Conclusion: There was a violation of natural justice and denial of hearing, in favour of the appellant.

Final Conclusion: The limitation dismissal was unsustainable, the impugned appellate order was set aside, and the matter was sent back for fresh decision on merits after giving the appellant an opportunity of hearing.

Ratio Decidendi: For limitation under service tax appellate proceedings, the relevant date is the date of communication of the adjudication order, and where proper service of the notice and order is not established, an ex parte adjudication cannot be sustained against the assessee.

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