Ex parte service tax adjudication set aside for denial of hearing; exemption contention remanded for fresh consideration.

An ex parte service tax adjudication order was set aside where the assessee contended that the notice and order had not been received and its exemption plea had not been considered. The court treated the denial of hearing as material because the adjudicating authority had not examined the assessee's contention, and remanded the matter for fresh adjudication after giving an opportunity to be heard and deciding the exemption issue afresh.

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Issues: Whether an ex parte adjudication order demanding service tax was liable to be set aside for denial of hearing and the matter restored to the adjudicating authority for fresh consideration.

Analysis: The impugned demand was made ex parte and the petitioner asserted that the show cause notice and order had not been received. Since the petitioner's exemption contention had not been considered by the adjudicating authority, the matter involved denial of hearing and required restoration so that the contention could be placed before the authority and decided afresh.

Conclusion: The ex parte adjudication order was quashed and the matter was remanded to the adjudicating authority for fresh decision after consideration of the petitioner's contention.

Ratio Decidendi: An ex parte adjudication that does not consider a party's contention and thereby denies hearing is liable to be set aside and remitted for fresh adjudication.

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