Ozone Plant Design Service Private Limited Vs Commissioner of Service Tax (CESTAT Delhi)
In the present case, upon filing of the refund claims, only a deficiency memo was issued to the appellant requiring the appellant to appear on a particular date and produce the required documents indicated in the memo to substantiate the claim. What information was required to be provided by the appellant has been stated in the deficiency memo and they relate to the location of the project where the services were provided by the appellant, copy of the Agreement with the service receiver and bank realization certificates, amongst others. This deficiency memo does not even remotely indicate the reason why the refund claim would be rejected. It was, therefore, obligatory on the Department to have issued a show cause notice to the appellant before rejecting the claim, since seeking information on certain matters would not suffice.
In Sidheshwar SSK Ltd., the issue that arose for consideration was whether grant of personal hearing without issuing a show cause notice would be sufficient if refund claims were to be rejected. The Commissioner (Appeal) had set aside the order for the reason that a show cause notice had not been issued by the Department. The appeal filed by the Department was dismissed for the reason that it was necessary for the Department to have issued a show cause notice.
