Order Date – 14 March 2023

Parties: B. Rajender Reddy Vs The Commissioner of Central Tax 

Facts – 

• The Petitioner, B. Rajender Reddy, is a special class contractor engaged in the business of executing road construction works of Government Departments.
• Show cause notice dated 18.10.2021 was issued to the Petitioner by the 1st respondent alleging non-payment of service tax by the petitioner on the taxable services provided for the period 2016-17 and 2017-18 (upto June, 2017), to which petitioner sought for time to file reply on 18.11.2021
• It is contended by the petitioner that after 18.11.2021, petitioner did not receive any intimation from the 1st respondent including notice for personal hearing. On 02.11.2022 an order was passed by the 1st respondent confirming demand along with interest and penalty.

Issue –

• Whether the order is passed violating the principles of natural justice?

Order –

• The Divisional Bench of Hon’ble High Court observed that if it accept the contention of learned counsel for respondent No.1 that the change in address was not informed by the Petitioner, they have failed to understand as to why the notice for personal hearing was sent by registered post when the show cause notice was sent through e-mail.
• Thus, for failure of the 1st respondent to provide an opportunity of personal hearing to the petitioner, the impugned order stands vitiated. However, the petitioner is now aware of the allegations made by the 1st respondent, the impugned order may be treated as the show cause notice. Petitioner shall file reply thereto within a period of four (04) weeks from today.