Chandra Sekhar Singh Vs Union of India & Ors (Calcutta High Court)
Calcutta High Court has dismissed a writ petition filed by Chandra Sekhar Singh challenging an ex parte service tax demand order, emphasizing the availability of an alternative statutory remedy of appeal. The petitioner sought to have the 2022 order treated as a show cause notice, allowing a fresh opportunity for a hearing, but the court found no reason to intervene given the petitioner’s prior non-appearance and the lapse of time.
The writ petition contested an order dated January 21, 2022, issued by the Assistant Commissioner, Central Tax, Shibpur Division. This order demanded service tax amounting to Rs. 3,85,041/-, along with accrued interest, under Section 73(1) of the Finance Act, 1994, read with Section 174 of the CGST Act, 2017. Additionally, an equivalent penalty of Rs. 3,85,041/- was imposed under Section 78 of the Finance Act, 1994, for alleged non-payment of service tax and violation of related rules.
Petitioner’s Argument and Precedent:
Mr. Chakraborty, counsel for the petitioner, requested the court to treat the impugned order as a show cause notice and direct the adjudicating authority to provide a proper hearing before passing a reasoned order. He cited an unreported decision by a Division Bench of the Calcutta High Court (MAT 2387 of 2023), where in a similar situation, the court had ordered an ex parte order to be treated as a show cause notice, followed by an opportunity for a fresh hearing. The petitioner highlighted that the order was passed during the COVID-19 pandemic.
