Court Overturns Tax Demand Against Cricket Association, Citing Fair Hearing Violations and Management Disputes.

The HC set aside the order confirming the service tax demand against M/s Rajasthan Cricket Association, citing a violation of natural justice principles. The appellant was not given adequate opportunity to respond to the show cause notice due to management disputes. The court allowed the appeal, granting the appellant an opportunity to file a reply and appear before the Commissioner for further proceedings, emphasizing the need for their cooperation.

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Issues: Violation of principles of natural justice in service tax demand confirmation order.

Summary:
The case involved M/s Rajasthan Cricket Association appealing against the order confirming the demand of service tax with interest and penalty. The appellant argued that the principles of natural justice were violated as they were not given adequate opportunity to respond to the show cause notice or heard by the Commissioner. The Commissioner noted the appellant's representative seeking adjournment and more time to file a reply, but no reply was submitted even after 11 months. The appellant explained that due to disputes in the management, they could not file a reply or appear before the Commissioner. The High Court had made interim arrangements for managing the affairs of the appellant due to ongoing controversies. The appellant was now granted an opportunity to file a reply to the show cause notice and appear before the Commissioner. The order confirming the demand was set aside, and the appeal was allowed for further proceedings with cooperation from the appellant.

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