Court Quashes Order for Ignoring Key Submissions, Orders Fresh Hearing with Full Consideration of Evidence and Precedents.

The court quashed the Order-in-Original dated 29 May 2019, finding a breach of natural justice due to the non-consideration of additional written submissions. It directed a fresh hearing by the adjudicating authority, requiring consideration of all relevant submissions and legal precedents. The court kept all contentions open and instructed the Commissioner to expedite the hearing and issue an appropriate order within ten weeks. The petition was disposed of without any order as to costs.

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Issues Involved:
1. Validity of the demand of service tax.
2. Constitutionality of Section 174 of the CGST Act, 2017.
3. Validity of specific notifications and orders under the CGST Act, 2017.
4. Constitutionality of Section 35F of the Central Excise Act, 1944.
5. Alleged breach of principles of natural justice.

Summary:

1. Validity of the Demand of Service Tax:
The petitioner challenged the demand of service tax made vide Order-in-Original dated 29.05.2019, arguing it was violative of Articles 14, 19, and 265 of the Constitution. The petitioner contended that the adjudicating authority did not consider additional written submissions due to a mistaken belief about the adjudicating officer's identity. The court found merit in this argument, noting that the additional submissions were material and their non-consideration constituted a breach of natural justice.

2. Constitutionality of Section 174 of the CGST Act, 2017:
The petitioner sought a declaration that Section 174 of the CGST Act, 2017 was ultra vires the Constitution (101st) Amendment Act, 2016, and violative of Articles 14, 19, and 265. However, the court did not provide a detailed ruling on this issue, instead focusing on the procedural lapses in the adjudication process.

3. Validity of Notifications and Orders:
The petitioner also sought to quash specific notifications and orders, arguing they were ultra vires Section 3 of the CGST Act, 2017, and violative of Articles 14 and 19. The court did not delve into the merits of these claims, emphasizing the need for a fresh adjudication process that considers all relevant submissions and legal precedents.

4. Constitutionality of Section 35F of the Central Excise Act, 1944:
The petitioner challenged Section 35F of the Central Excise Act, 1944, as being arbitrary and violative of Articles 14 and 19. The court did not specifically address this issue, focusing instead on the procedural deficiencies in the adjudication of the service tax demand.

5. Alleged Breach of Principles of Natural Justice:
The court found that the petitioner suffered prejudice due to the non-consideration of additional written submissions, which were inadvertently placed before the wrong adjudicating authority. The court emphasized that any breach of natural justice principles is an incurable defect and necessitated a fresh hearing.

Conclusion:
The court quashed the impugned order dated 29 May 2019 and directed the adjudicating authority to hear the petitioner afresh, considering all relevant submissions and legal precedents. The court kept all contentions of both parties open and directed the Commissioner to expedite the hearing and pass an appropriate order within ten weeks. The petition was disposed of with no order as to costs.

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