Pankaj Rai Vs Union of India (Patna High Court)
Patna High Court held that delay of about three years in passing of service tax order with no reason explained for the delay is not justifiable. Accordingly, appeal is allowed and order is liable to be set aside.
Facts- The petitioner’s Late husband was issued a Show Cause Notice dated 11.10.2021 by Respondent No. 4 claiming a service tax amounting to Rs.13,07,700/- for the period from April, 2016 to June, 2017. The notice to show cause was issued under proviso to sub-section (1) of Section 73 of the Finance Act, 1994 r.w.s 174 of the Central Goods and Services Tax Act, 2017. The Respondent No. 4 alleged that there was a willful suppression and misrepresentation of facts, therefore, the extended period of limitation of five years was invoked.
Thereafter, Order-in-Original dated 13.05.2024 has been issued by Respondent No. 5 who received the file on transfer of records. Respondent No. 5 has demanded the aforementioned tax amount and has imposed penalty of some amount along with applicable interest. Notably, the petitioner mainly alleges that order has been passed after about three years from the date of issuance of show cause notice.
Conclusion- Coordinate Bench of this Court has in the case of Pawan Kumar Upmanyu set aside the order of the respondents finding the delay beyond one year for no reason explained and the quantum of the tax involved.
