The CESTAT allowed the appeal by way of remand for de novo...

The CESTAT allowed the appeal by way of remand for de novo adjudication. It held that although sufficient opportunities were granted to the appellant, including personal hearings, the appellant failed to file necessary documents to substantiate its claim that the amounts received were loans against bank guarantees and not taxable advances. The CESTAT observed that service tax is applicable on advances unless adequately proven otherwise. However, in the interest of justice, the matter was remanded to the Commissioner for fresh adjudication.