KLOCKNER DESMA MACHINERY PVT. LTD. Vs. CST, AHMEDABAD

JUDGEMENT

(1.) AFTER dispensing with the condition of pre -deposit of service tax of Rs. 36,500/ - and penalties imposed upon under various provisos of Finance Act, 1994, we proceed to decide the appeal itself, inasmuch as we are convinced that the impugned order stand passed in gross violation of principles of natural justice.

(2.) AFTER hearing both sides, we find that the demand of service tax raised against the appellant was initially dropped by the Assistant Commissioner, vide his Order dt. 30 -3 -10. The same was received by the Commissioner and show cause notice was issued on 13 -1 -10. The said notice required the appellant to file reply within 7 days of receipt of the show cause and appear for personal hearing on 20/21/22 -1 -10. The appellants vide letter dt. 18 -1 -10 applied for extension of time to file reply the show cause notice. There is no reference in the impugned order to said reply of the assessee. In any case, to give a period of 7 days to the assessee to file reply and to grant personal hearings on 3 consecutive dates, cannot be held to be in accordance with the principles of natural justice.

(3.) WE , accordingly, set aside the impugned order on this short ground itself and remand the matter to the Commissioner for fresh decision. Needless to say that the principles of natural justice would be observed by the adjudicating authority.