2010 (4) TMI 441 - AT - Service Tax

Tribunal grants appellant opportunity to respond and defend case, emphasizing fair process and natural justice

TRAVEL CLUB FOREX P. LTD. Versus COMMISSIONER OF CENTRAL EXCISE, HYDERABAD

The Tribunal remanded the case to the adjudicating authority despite the appellant's initial non-compliance. The appellant was granted the opportunity to ... Show Cause Notice - the appellants are engaged in providing Air Travel Agents service, they had taken the service tax registration in July, 1997 and were discharging service tax liability. Demand made alleging that service tax not paid. Lower authority was not happy with the attitude of the appellant. Thus confirm the demand. Held that- deprecate the attitude of the appellant, at the same time since the issue is fixing of service tax liability, in the interest of justice, we hold that the appellant should be given a chance to defend his case properly before the adjudicating authority. set aside the impugned order and remand the matter Issues: Stay petition for waiver of pre-deposit of service tax and penalty amounts. Appellant's failure to respond to show cause notice and attend hearings. Appellant's plea for not receiving relied upon documents.Analysis:1. The appellants, engaged in Air Travel Agents service, were paying service tax based on domestic and international tickets until 2003 when they switched to payment on commission received from airlines. The lower authorities found that the appellants did not pay service tax on the commission received, relying on information from airlines/IATA. The appellant challenged this decision.2. The Tribunal noted that the appellant had made some deposit against the service tax liability but had not filed a reply to the show cause notice or attended hearings before the adjudicating authority. The appellant claimed they were not provided with relied upon documents for a proper defense. The Tribunal expressed dissatisfaction with the appellant's non-compliance but acknowledged the need for a fair defense.3. Despite the appellant's failure to respond earlier, the Tribunal remanded the matter to the adjudicating authority. The appellant was directed to file a reply to the show cause notice within four weeks and given the opportunity to defend the case properly. The adjudicating authority was instructed to provide necessary documents and decide the matter within three months, ensuring principles of natural justice were followed.4. The Tribunal emphasized the importance of allowing the appellant a chance to present a defense, setting aside the previous order and remanding the case for a fresh decision. The appellant's plea for not receiving relied upon documents was considered valid, and the Tribunal directed the adjudicating authority to ensure a fair process moving forward. The stay petition and appeal were disposed of accordingly.