Service tax adjudication remitted after ex parte order; petitioner allowed to file a fresh reply and exemption claim reconsidered.

An ex parte service tax order-in-original was set aside because the petitioner had not been given an effective opportunity to reply to the show-cause notice. The HC noted that the exemption claim under Notification No. 25/2012-ST and the question of taxability under Section 65B(44) of the Finance Act, 1994 required fresh examination, and that the adjudication had to be reconsidered in light of earlier directions in connected matters. The matter was remitted to the stage of reply, with liberty to file a fresh response and a direction that the adjudicating authority proceed accordingly.

---

---

Issues: Whether the ex parte order-in-original assessing service tax was liable to be set aside and the matter remitted for fresh adjudication after affording the petitioner an opportunity to file reply to the show-cause notice.

Analysis: The impugned adjudication was passed ex parte. The petitioner sought reconsideration on the ground that the demand arose under Section 73(2) of the Finance Act, 1994 and that the claim of exemption under Notification No. 25/2012-ST dated 28.06.2012 and the question of taxability under Section 65B(44) of the Finance Act, 1994 required fresh examination. The Court noted that the order under challenge required reconsideration in the light of the earlier directions issued in connected matters, and that the petitioner should be permitted to place a fresh reply before the adjudicating authority.

Conclusion: The order-in-original was set aside and the matter was remitted to the stage of reply to the show-cause notice, with liberty to the petitioner to file a fresh reply and with the adjudicating authority required to proceed in accordance with the earlier directions.

---