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2022 (10) TMI 734 - AT - Service TaxRecovery of Service Tax - premium received towards marine policy - period from 2006-07 to 2013-14 - HELD THAT:- The adjudicating authority has examined the breakup of the premium on ‘marine policy’ received by the respondent herein for 2011-12 and has conclusively arrived at the finding that, barring the policies that are exempt from taxation, tax has been duly discharged. The grounds of appeal contain no cogent evidence of any misstatement or error in the said finding. The demand for 2006-11 has been dropped solely on the premise that CERA appeared to have accepted the stand of the service tax authorities that appropriate taxes had been discharged. CERA is the field arm of the Comptroller and Auditor General (CAG) entrusted with responsibilities in accordance with the Constitution. The correspondence between the revenue administration and the audit arm constitutes inter-departmental interface on objections raised by the latter with a hierarchy of consequences upon non-acceptance - Most often, the issue of show cause notice in furtherance of objections is sufficient satisfaction as far as the audit arm is concerned. A show cause notice is issued under the appropriate statutory empowerment and is taken to its logical conclusion, independent of the source leading to the issue of the notice, in adjudication proceedings. Such proceedings are governed by standard procedures that conform to the principles of natural justice with a specific adjudicating outcome upon evaluation of the responses to the show cause notice - the obligation devolving upon the adjudicating authority has evidently not been discharged insofar as the demand the first notice is concerned. It is seen for that, for the remaining notices, there has been no evaluation save for the period 2011-12. The applicability of the finding for this period to the subsequent periods has not been explained in the impugned order. Furthermore, the discussion pertaining to 2011-12 has placed on record the submission made by the noticee without either detail, or examination, of the facts relating to the several exemptions claimed by the assessee. Thus, the adjudicatory process has been incomplete and has thereby impacted the acceptability of the impugned order - it would be appropriate to have the notices adjudicated afresh for which the impugned order is set aside and matter remanded back to the original authority for appropriate remedial action - appeal allowed by way of remand.
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