Service tax demand remanded after failure to examine supporting documents and grant a proper hearing.

The service tax demand was set aside and remanded because the assessee's supporting profit and loss account and annexures had not been examined by the revisional authority. Those documents were said to show that the alleged tour operator activity began only from October 2001, while the demand covered the earlier period from 1 April 2000 to 30 April 2001. A fresh adjudication was required after considering the documents and granting a reasonable personal hearing.

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Issues: Whether the impugned service tax demand order deserved to be set aside and the matter remanded for fresh decision in view of the assessee's documents not having been examined by the revisional authority.

Analysis: The assessee sought to rely on profit and loss account and annexures to show that the alleged tour operator's service commenced only from October 2001, while the demand related to the earlier period from 1.4.2000 to 30.4.2001. Those documents had not been filed before the revisional authority, and a proper opportunity was therefore required for their examination. A fresh decision was warranted after considering the documents and after granting a personal hearing.

Conclusion: The impugned order was set aside and the matter was remanded to the Commissioner for fresh adjudication after examining the documents and affording reasonable opportunity of being heard.

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