The appellant's knowledge about the proceedings and failure to respond to the show cause notice precluded the plea of violation of principles of natural justice.

R. Sudhakar, J.

1. C.M.A.No.395 of 2014 is filed as against the order of the CESTAT dated 27.11.2013 in Miscellaneous Order No.42764 of 2013 directing pre-deposit of a sum of Rs.40,00,000/-in a case arising out of service tax demand issued by the jurisdictional Commissioner.

2. C.M.A.No.2136 of 2014 is filed as against the order dated 04.02.2014 in Final Order No.40063 of 2014 for non-compliance of pre-deposit ordered by the Tribunal in the Miscellaneous Application on 27.11.2013.

3. The appellant herein is a private limited company engaged in the business of providing the services of transportation of goods by road, steamer agent services, manpower recruitment or supply agency services as well as services in connection with the import/export of goods. On 19.4.2010, the appellant was issued with a show cause notice bearing No.267 of 2010 by the Commissioner of Service Tax, Chennai demanding service tax of Rs.4,36,60,430/- for the period 2004-05 to December, 2008 together with interest and penalty. Thereafter, the appellant was called for personal hearing on 15.11.2011. Since the appellant did not appear for the personal hearing, subsequent dates were given for personal hearing on 07.12.2011, 27.12.2011 and 18.1.2012. The Commissioner of Central Excise held that the assessee had suppressed the value of taxable services received by them in their returns with an intent to evade payment of appropriate service tax. As the appellant failed to appear for all the three hearings to submit their defence, with no other option except to decide the case on merits, the Commissioner of Income Tax (Appeals) has passed the following order:

" i) I confirm the demand of Rs.4,36,60,430/- (Rupees Four Crores Thirty-six Lakhs Sixty Thousand Four Hundred and Thirty only) against M/s.ILS Logistics Pvt. Ltd., being the Service tax payable for the period from 2004-05 to December 2008 under Section 73(2) read with proviso to Section 73(1) of the Finance Act, 1994;

ii) I appropriate an amount of Rs.3,21,659/- (Rupees Three Lakhs Twenty-one Thousand Six Hundred and Fifty-nine only) paid by them towards the service tax demanded above;

iii) I demand interest at appropriate rate from them under Section 75 of the Finance Act, 1994 on the amount demanded above at (i) from the due date of payment till the date of actual payment;

iv) I impose a penalty of Rs.4,36,60,430/- (Rupees Four Crores Thirty-six Lakhs Sixty Thousand Four Hundred and Thirty only) on them under Section 78 of the Finance Act, 1994.

v) The amount of penalty shall, however be reduced to 25% of the Service Tax determined, if only the service tax and interest determined is paid along with reduced penalty within 30 days from the date of receipt of this order in terms of proviso to Section 78 of the Finance Act, 1994; and

v) I do not propose to impose any penalty under Section 76 and Section 77 of the Finance Act, 1994."

4. Aggrieved by the same, the appellant preferred an appeal before the Tribunal along with an application for waiver of pre-deposit of service tax, interest and penalty. The Tribunal, by order dated 27.11.2013, held as follows:

"7. Considering the submissions of both sides, and taking into account the financial hardships as the applicant-company ceased the business, we direct the applicant to deposit a sum of Rs.40,00,000/- (Rupees Forty lakhs only) within 6 weeks. Upon deposit of the said amount, predeposit of balance amount of tax along with interest and penalty would be waived and its recovery is stayed during pendency of the appeal. Compliance is to be reported on 21.1.2014. Both sides are at liberty to mention at the time of compliance for disposal of appeal."

5. Aggrieved by the order of the pre-deposit by the Tribunal, the appellant preferred an appeal before this Court in C.M.A.No.395 of 2014. Thereafter, since the appellant did not comply with the order dated 27.11.2013, directing pre-deposit, the Tribunal, by order dated 04.02.2014, dismissed the appeal