July 2016
2016 (42) STR 420 (Del) CHL Limited vs. Commissioner of Service Tax, Delhi.
By Puloma Dalal
Jayesh Gogri
Mandar Telang
Chartered Accountants
Reading Time 2 mins
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Department cannot refuse application for adjournment on medical grounds of Chartered Accountant and pass ex-parte order when case was pending with department over six years.
Facts
A Show Cause Notice was pending since more than 6 years wherein only one hearing was held. An application for adjournment was filed before adjudicating authority accompanied by a Medical Certificate for the representative CA. However, the Adjudicating Authority passed an ex-parte order on the last date of his service period by refusing the adjournment request. Appellant filed writ before High Court challenging the ex-parte order.
Held
Reasonable request of adjournment was unjustifiably refused and the Petitioner was deprived of the opportunity of effectively participating in the adjudication proceedings which appears to be a case of violation of principles of natural justice. Therefore the High Court held that writ is maintainable in spite of availability of alternative remedy. It was observed that it would not have caused any serious prejudice to the department if the request for adjournment was accepted. It appears that the Adjudicating Authority was in a hurry to conclude the proceedings as he did not want to show the notice as pending for over six years and therefore, passed the order on the last date before his retirement. Therefore, the order was set aside with a direction to resume adjudication proceedings.
