2009 (12) TMI 300 - AT - Service Tax

Natural Justice- The issue involved in this case is regarding non-discharge of service tax liability by the appellant on the services rendered by them on security services supply of manpower & recruitment. Held that- impugned order is set aside and appeal is allowed by way of remand to the adjudicating authority to pass an order after following the principles of natural justice before arriving at a conclusion. Stay petition also gets disposed off.

Summary

Issues Involved:
Non-discharge of service tax liability on security services, supply of manpower, and recruitment.

Analysis:
The case involves a stay petition for the waiver of pre-deposit of tax, interest, and penalties concerning service tax liability on security services, supply of manpower, and recruitment. The appellant did not appear during the proceedings before the adjudicating authority but requested relevant documents for their defense. The respondent argued that the appellant collected service tax from clients but did not fully pay it to the government. The appellant's failure to participate in the personal hearing was highlighted. The Tribunal noted that the appellant did not file a reply to the show cause notice and had requested relevant documents. The Tribunal emphasized that an adjudication order must consider the noticee's defense, either in the form of a reply or during the personal hearing, to adhere to the principles of natural justice. The matter was remanded to the adjudicating authority for reconsideration within three months to ensure a fair decision-making process. The appellant was instructed to actively pursue relevant documents and records and file a reply without seeking adjournments during the personal hearing. The impugned order was set aside, and the appeal was allowed for remand to the adjudicating authority to ensure a decision following the principles of natural justice. The stay petition was also disposed of in this process.