2026 (3) TMI 441 - HC - Service Tax

Natural Justice failure in service led to order being set aside and remanded for fresh adjudication, subject to a deposit and hearing.

Order dated 24.04.2024 was set aside for breach of natural justice because notice was not received after the appellant changed address and the respondent ... Violation of principles of natural justice for non-service of notice due to change of address - Order passed without affording the appellant an opportunity to be heard - conditional remand requiring deposit for fresh adjudication - non-payment of the mandatory pre-deposit. Violation of principles of natural justice for non-service of notice due to change of address - HELD THAT: - The Court found that the address to which notice was issued in the impugned order and the address mentioned in Writ Petition No.6856/2025 were the same, and accepted the appellant's contention that he had shifted residence such that the notice was not served. The Court declined to examine merits of the tax liability at this stage and concluded that the adjudicatory order was vitiated by lack of opportunity to be heard, warranting setting aside and fresh adjudication after affording the appellant a hearing. [Paras 5, 7, 8] The order dated 24.04.2024 is set aside and the matter is remanded to the respondent for fresh adjudication after affording the appellant an opportunity of hearing. Conditional remand requiring deposit for fresh adjudication - HELD THAT: - While noting that the appellant had notice of the earlier remand and had a duty to update his address, the Court nonetheless found a breach of natural justice and exercised discretion to order a conditional remand. The Court directed the appellant to comply with the specified deposit condition and personal appearance before the respondent as prerequisites to the fresh adjudication. [Paras 11] The remand is subject to the appellant depositing the specified sum within the prescribed period in installments and appearing before the respondent as directed. Final Conclusion: The intra-court appeal is partly allowed: the impugned adjudication order is set aside for breach of natural justice and the matter is remanded for fresh adjudication, subject to the appellant complying with the deposit and appearance conditions directed by the Court. Issues: Whether the order dated 24.04.2024 passed without affording the appellant an opportunity to be heard violated the principles of natural justice, and whether the matter should be remanded for fresh adjudication.Analysis: The Court examined the service of notice and address particulars after remand and found that the appellant had shifted residence and did not receive the notice at the new address; the respondent proceeded ex parte and adjudicated the credits reflected in the bank account. The Court confined its review to procedural fairness and did not enter into merits of tax liability or correctness of credits considered. The Tribunal's direction requiring statutory pre-deposit under Section 35F of the Central Excise Act, 1944 was noted as a statutory condition for maintaining the appeal but not adjudicated on merits by this Court.Conclusion: The order dated 24.04.2024 is set aside for violation of the principles of natural justice and the matter is remanded to the respondent for fresh adjudication after affording the appellant a hearing, subject to the appellant depositing Rs.75,00,000/- within four weeks and appearing before the respondent on 25.02.2026.