Service Tax Demand without verifying Written Submissions: CESTAT directs Re-adjudication [Read Order]

The New Delhi bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) directed the adjudicating authority to re-adjudicate the service tax demand without verifying the written submission. 

Citicorp Finance India Limited, the appellant assessee appealed against the order passed by the Commissioner of Service Tax for order seeks to disallow CENVAT credit and also orders for recovery of service tax with penalty and interest. 

Kamal Sawhney, the counsel for the assessee contended that the assessee had appeared for a personal hearing on 08.08.2012, 11.09.2013, and 19.03.2015 and had also submitted an additional reply on 29.08.2012 and also pointed out that written submissions and additional submissions were also filed and not considered by the department. 

Also submitted that the issues can be decided by the Tribunal, but in our considered opinion it would be appropriate to remand the matter to the adjudicating authority to decide these issues in the first instance as we are satisfied that not only had the assessee filed replies to the show cause notice but had also filed written submissions and additional written submissions and had also appeared on some dates before the adjudicating authority. 

Rajeev Kapoor, the counsel for the department contended that the matter can be remanded to the adjudicating authority to decide it afresh after considering the reply to the show cause notice and the written submissions. 

The Bench observed that it was necessary to direct the adjudicating authority for re-adjudication for considering the reply and the written submissions of the assessee filed before the tribunal. 

The two-member bench comprising Dilip Gupta (President) and Subba Rao (Technical) remanded the matter back to the adjudicating authority to decide it afresh after taking into consideration the reply submitted by the assessee as well as the written submissions and after providing adequate opportunity for hearing to the assessee. 

To Read the full text of the Order CLICK HERE

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