Service Tax Appeal cannot be Dismissed for Non-Appearance at Hearing or unsigned Appeal Papers by Authorized Person: CESTAT [Read Order]

The Mumbai Bench of Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) ruled that a service tax appeal cannot be dismissed for non-appearance at the hearing or unsigned appeal papers by the authorized person.

Virtual Info Systems Pvt. Ltd., the appellant’s appeal before the Commissioner (Appeals) was dismissed on the technical grounds that the appellant failed to comply with Rule 2(3) of the Central Excise (Appeals) Rules, 2001, and did not appear for a scheduled personal hearing.

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The appellant challenged the order of the Commissioner (Appeals) before the Mumbai Bench of CESTAT arguing that the appeal was dismissed on technical grounds without addressing the merits of the case.

The two-member bench comprising S.K. Mohanty (Judicial Member) and  M.M. Parthiban (Technical Member) heard both sides arguments and perused the records.

The tribunal noted that the Commissioner (Appeals) did not address the merits of the case and instead dismissed the appeal purely on technical grounds. The tribunal explained that once an appeal number was assigned, it was incumbent upon the Commissioner to consider the merits, even if procedural defects were present.

The tribunal criticizes the Commissioner (Appeals) for dismissing the appeal, even though the appellant did not attend the scheduled hearing or fix the procedural defect, the Commissioner (Appeals) should have still evaluated the case based on the available evidence.

The tribunal emphasized that dismissal without addressing the case's merits, merely because of non-appearance at a personal hearing and lack of a signature by an authorized person was seen as improper.

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Therefore, the tribunal set aside the impugned order of the Commissioner (Appeals) and remanded the matter back to the Commissioner (Appeals) with directions to decide the appeal on its merits after giving the appellant an opportunity for a personal hearing.

The appellant’s appeal was allowed.

To Read the full text of the Order CLICK HERE

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