Pawan Kumar Upmanyu Vs Union of India (Patna High Court)
Patna, [Current Date]: The Patna High Court has allowed a petition filed by Pawan Kumar Upmanyu, quashing an order dated November 17, 2023, issued by the Assistant Commissioner C.G.S.T & Central Excise, Vaishali Division, Hajipur. The impugned order had confirmed a service tax penalty of ₹6,33,879/- under Section 78 of the CGST Act, read with Section 174, along with additional penalties of ₹10,000/- each under Section 77(1)(C), Section 77(1)(a), and Section 77(2) of the CGST Act.
The petitioner challenged the penalty, arguing that it was imposed for the financial year 2016-17, a period when the Central Goods and Services Tax (CGST) Act was not in existence. At the relevant time, the Finance Act, 1994, was applicable, which exempted services provided (received) by eligible educational institutions. The petitioner contended that the services he provided were under the Free and Essential Education Act, 2009, based on a notification from the Union of India, thus rendering the penalty orders under the CGST Act, as well as the Finance Act, 1994, legally invalid.
The respondents raised a preliminary objection regarding the availability of a statutory remedy of appeal for the petitioner. However, the petitioner’s counsel countered that the matter was directly covered by a prior decision of a co-ordinate Bench in M/S Kanak Automobiles Private Limited vs. Union of India & Ors., a case that had subsequently been the subject of a Special Leave Petition (Civil) Diary No. 54313/2024, decided by the Hon’ble Supreme Court on January 3, 2025.
