Basement to Roof Vs Assistant Commissioner (Orissa High Court)
Orissa HC Sets Aside Service Tax Order, Allows Petitioner to Present Exemption Claim; Orissa HC Quashes Service Tax Demand on Ex Parte Basis, Says Non-Consideration of Contention is Denial of Hearing
The Orissa High Court has set aside an ex parte service tax demand against Basement to Roof, an architectural firm. The court ruled that the adjudicating authority’s failure to consider the firm’s contentions amounted to a denial of a fair hearing.
The petitioner had argued that the service tax demand, dated January 1, 2025, was invalid because its services to the government were exempt under a specific notification from June 20, 2012. The firm stated it only became aware of the demand when recovery proceedings were initiated. The revenue’s counsel conceded that the tax authority had not considered the firm’s arguments because the order was made ex parte.
The court, admitting the writ petition, found this non-consideration to be a fundamental procedural error. It quashed the demand and restored the matter to the adjudicating authority, directing the firm to submit its contentions within three weeks. The court warned that if the petitioner failed to do so by September 4, 2025, the original ex parte order would be automatically reinstated.
