Dismissal of Writ Petition on Service Tax Demand & Penalty: Respondent to Issue Order, Petitioner to Respond

The Court dismissed the writ petition challenging a Show Cause Notice for service tax demand and penalty imposition, directing the petitioner to respond to the notice and engage in the adjudication process under the Finance Act, 1994. The Court refrained from making any observations on the case's merits and instructed the petitioner to submit a reply within 30 days. The 1st respondent was mandated to issue an appropriate order within three months, ensuring the petitioner's right to be heard before the final decision. The petition was disposed of with directions, no costs imposed, and closed on 10.02.2021.

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Issues:
Challenge to Show Cause Notice for service tax demand and penalty imposition.

Analysis:
The petitioner challenged Show Cause Notice No.27/2014 proposing a service tax demand of Rs. 18,57,154 and penalty imposition. The petitioner claimed a bona fide belief of not being liable for service tax on property renting. The petitioner alleged denial of waiver from payment under section 73(3) of the Finance Act, 1994 due to the issuance of the impugned notice.

The Court noted the absence of a counter and held that the writ petition is subject to dismissal as the petitioner had only received the show cause notice. The petitioner was directed to respond to the notice and engage in the adjudication process under the Finance Act, 1994. The Court refrained from making any observations on the case's merits, emphasizing the petitioner's opportunity to present arguments during the adjudication process.

The petitioner was instructed to submit a reply to the show cause notice within 30 days and the 1st respondent was mandated to issue an appropriate order within three months from the receipt of the Court's order. The Court ensured the petitioner's right to be heard either in person, through a representative physically, or via video conference before the final order is passed. The writ petition was disposed of with these directions, with no costs imposed, and the miscellaneous petition was closed on 10.02.2021.

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