Dhanjit Kumar Pathak Vs Union of India And 3 Ors (Gauhati High Court)
In the case of Dhanjit Kumar Pathak vs. Union of India, the Gauhati High Court addressed a service tax demand order issued by the Deputy Commissioner of CGST. The petitioner, Dhanjit Kumar Pathak, challenged an Order-In-Original dated March 30, 2023, which confirmed a service tax demand of over Rs. 16 lakh for the 2016-2017 financial year, along with interest and penalties. The petitioner’s primary contention was that the order was passed without the prior service of a show-cause notice and without providing any hearing notices, thereby violating the principles of natural justice.
During the court proceedings, the High Court asked the respondent’s counsel to provide evidence that the show-cause notice, originally issued on October 22, 2021, had been properly served to the petitioner. However, the tax authorities failed to produce any such proof. This failure to demonstrate service led both parties to a joint submission, where they agreed that the case should be sent back to the Deputy Commissioner for a fresh decision.
The High Court accepted the joint prayer and proceeded to set aside the contested order dated March 30, 2023. The court then directed the petitioner to appear before the Deputy Commissioner, CGST and Central Excise, on August 28, 2025. Upon this appearance, the tax authority is required to provide the petitioner with a copy of the show-cause notice and its enclosures. Following this, the petitioner will have 15 days to submit a formal reply. The Deputy Commissioner is then instructed to proceed with the matter in accordance with the prescribed procedure and issue a new, well-reasoned order. This decision underscores the fundamental requirement for tax authorities to follow due process, ensuring that taxpayers are properly notified and given a fair opportunity to present their case before any final order is passed.
