Drafting Grounds of Appeal under Service Tax

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jayant (Querist)
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30 April 2025 Could anybody senior help me by providing draft grounds of appeal against Demand Order of Service Tax which was never communicated to the assessee and sent directly to the bank of assessee.
Service tax returns were duly filed and Service tax was duly paid as per IT TDS. It related to the financial year 2016-17.
Thanks.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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12 August 2025 Here is a draft format for the Grounds of Appeal under Service Tax (for the pre-GST regime), especially in a case where:

A demand order was never served to the assessee.

The order was sent directly to the bank (for recovery).

Returns were duly filed and taxes were paid.

📝 DRAFT GROUNDS OF APPEAL
(Under Section 85 of the Finance Act, 1994 or relevant applicable provisions)

IN THE OFFICE OF THE COMMISSIONER (APPEALS), [Jurisdiction]
IN THE MATTER OF APPEAL UNDER SERVICE TAX LAW

Appellant: [Name and Address of Assessee]
ST Registration No.: [Service Tax Registration Number]
Order Appealed Against: Order-in-Original No. [●], dated [●]
Authority Passing the Order: [Designation], [Jurisdiction]
Date of Communication (if any): Not communicated
Amount Involved: ₹[●]

GROUNDS OF APPEAL
That the impugned Order-in-Original has been passed without serving the same to the Appellant, which is in gross violation of the principles of natural justice and the mandatory provisions of the Finance Act, 1994 read with the Service Tax Rules, 1994.

That the demand has been enforced by directly initiating recovery from the Appellant’s bank account, without any opportunity of being heard, thereby depriving the Appellant of the legal right to file a representation or explanation.

That the Service Tax returns for the relevant financial year 2016-17 were duly filed and all service tax liabilities were discharged, which is evident from the electronic filing records and can also be substantiated by TDS data under Income Tax Act (Form 26AS and Form 16A from clients).

That there is no short payment, suppression of fact, or willful misstatement on the part of the Appellant, and the entire demand appears to have been raised either on incorrect assumptions or without considering the data already filed with the department.

That the order has been passed without issuing any Show Cause Notice, in contravention of the settled law laid down in numerous decisions, including:

CCE v. Brindavan Beverages Pvt. Ltd. [(2007) 213 ELT 487 (SC)] – where the Hon’ble Supreme Court held that non-service of SCN renders the demand invalid.

That the recovery made without a legally tenable and communicated demand is liable to be set aside and the amount recovered is liable to be refunded with interest.

That the Appellant reserves the right to amend, alter, or add any further grounds at the time of hearing.

PRAYER
In view of the above grounds, the Appellant humbly prays that:

The impugned order and demand raised thereunder be set aside;

The recovery from the bank account be held illegal and a refund be ordered with interest;

Such other relief be granted as may be deemed just and proper.

✅ Annexures (Suggested):
Copy of Service Tax returns for FY 2016–17

Proof of payment of tax (Challan copies or GAR-7)

Form 26AS/ TDS certificates supporting receipts and tax payment

Bank statement showing debit by department

Affidavit stating non-receipt of order

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