By Puloma Dalal, Jayesh Gogri Chartered Accountants
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Personal hearing fixed on 25-1-2007 or 29-1-2007 or 31-1-2007 — Impugned order passed ex parte without hearing Noticee — Appellant stated that adjournment sought on 31-1-2007 by sending fax — Adjournment request rejected — Order passed on 13-2-2007 — Order set aside — Matter remanded for fresh decision.
Facts:
A company registered under the category ‘Authorised Service Station’, received commission from finance companies, commission from insurance companies and incentives from its principal for achievement of targets. The appellant-company was engaged in the said activities without intimating the Department about the same and without following statutory formalities including payment of tax, for the period July 2003 to September 2005. The appellant had paid Rs.6,84,254 towards the demand confirmed against them in the year 2005. The Commissioner sent showcause notice and fixed personal hearing at 1600 hrs. on either of three alternate dates viz. 25th January or 29th January or 31st January. The appellant sought adjournment of hearing on 31-1-2007.
The adjournment was rejected and ex parte order was passed.
Held:
The Tribunal observed that giving the choice of three dates is considered as one date for hearing and the appellants could appear before the Commissioner on any one of the dates. Statutorily, the appellants were entitled to request for three adjournments. The appellants sought adjournment of hearing fixed on the last date indicated in the notice which cannot be considered as adjournment of earlier two dates. Denial of personal hearing was violation of its statutory right and also violation of principles of natural justice. Hence the order of the Commissioner was vacated and the case was remanded to the Commissioner.
