Nimeshbhai Gunvantbhai Patel Vs Union of India & Ors. (Gujarat High Court)
The petitioner filed a writ petition under Article 226 of the Constitution seeking quashing of the show cause notice dated 22.04.2021 and the Order-in-Original dated 31.10.2022.
The petitioner, an approved “E-1” class contractor undertaking works contracts for the Road & Building Department, Irrigation Department and Public Health Engineering Wing, contended that the services rendered were not liable to service tax under the Finance Act, 1994. The petitioner regularly filed income tax returns and, after the introduction of GST with effect from 01.07.2017, obtained GST registration on 31.10.2017.
According to the petitioner, after PAN-based data was shared with the Income Tax Department, the department issued the show cause notice for the financial years 2015-16 and 2016-17, treating income reflected in Form 26AS as the value of taxable services and proposing service tax liability. The petitioner submitted replies dated 19.11.2021 and 01.08.2022, including reconciliation of Form 26AS with receipts and supporting particulars. Despite this, the respondent passed the Order-in-Original dated 31.10.2022 confirming the demand on the basis of tax deducted at source reflected in Form 26AS.
The petitioner stated that an appeal could not be filed in time due to illness during the COVID-19 period and subsequent ill health. Recovery proceedings were initiated, including freezing of the petitioner’s bank accounts. The petitioner also filed an application for rectification on 11.03.2024, but no response was received.
