Panchanan Birabara Jagdevray Vs Principal Commissioner (Orissa High Court)
Orissa High Court has put a hold on an order against Panchanan Birabara Jagdevray, following arguments concerning the delayed determination of service tax. Counsel for the petitioner contended that even if there were allegations of suppression, the final amount of service tax owed was not determined within one year from the date of the initial notice. The counsel emphasized the mandatory nature of the word ‘shall’ in Section 73(4B) of the Finance Act, 1994, suggesting a strict timeline for such determinations. Reliance was placed on a recent judgment by the Patna High Court in the case of M/s. Kanak Automobiles Pvt. Ltd. v. Union of India, which stated that while the one-year timeframe isn’t an absolute mandate, statutory authorities must take all possible steps to conclude proceedings within that period, and failure to take any steps frustrates the goal of expediency. The Junior Standing Counsel representing the revenue requested two weeks to obtain instructions on the matter. Consequently, the Orissa High Court listed the case for further hearing on March 27, 2025, and ordered a stay on the impugned order dated August 16, 2024, until the next hearing.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
