Material collected by Adjudicating authority after completion of personal hearing and the same used for confirmation of demand - Principles of natural justice violated - matter remanded
DEMAND notices of Service Tax in excess of Rs.15 lakhs each was issued to the applicants on the ground that the applicants provided ‘Manpower Recruitment or Supply Agency Service'.
After the applicants attended personal hearing on 24/07/2012, the adjudicating authority made certain enquiries and after receipt of a report from the Assistant Commissioner of Labour, Aurangabad, an o-in-o dated 23/08/2012 was passed confirming the demands of Service Tax.
The lower appellate authority directed the applicants to deposit the amount of service tax along with interest as confirmed by the adjudicating authority for hearing of the appeals. However, since the applicants failed to make the pre-deposit, their appeals were dismissed.
Before the CESTAT, the appellant reiterated their submission that since the evidence collected by the adjudicating authority after the date of personal hearing is used against the applicant and that too without supplying copy to them the order is passed in violation to the principles of natural justice.
Consequent upon the directions of the Bench, the said enquiry report was produced by the Revenue representative during the hearing.
The Revenue representative submitted that the only information sought by the adjudicating authority from the Assistant Commissioner of Labour, Aurangabad is regarding the registration certificate under the Contract Labour (Regulation & Abolition) Act, 1970 obtained by the applicants and that the same had no bearing on the merits of the case.
The Bench observed that in paragraph 16, 17, the adjudicating authority had taken into consideration the information received from the Assistant Commissioner of Labour, Aurangabad and relied upon the same.
Holding that there is merit in the contention of the applicant that the adjudication order is passed in violation to the principles of natural justice and that the relevant papers have been received by the applicants during the hearing of the appeals before the Tribunal, the Bench set aside the orders and remanded the matter back to the adjudicating authority to decide afresh and after affording an opportunity of hearing to the appellants.
And now, the entire process starts all over again…all because of a puerile slip!