Court sets aside Order-In-Original on Service Tax for Renting Immovable Property, remands for fresh consideration.

The High Court allowed the Writ Petition, setting aside the challenged Order-In-Original under the Finance Act, 1994 for non-payment of Service Tax related to Renting of Immovable Property. The matter was remanded to the respondents for a fresh consideration, directing a personal hearing for the petitioner and adherence to legal procedures in adjudicating the show cause notice. No costs were awarded, and the related Miscellaneous Petition was closed.

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Issues:
Challenge to Order-In-Original under Finance Act, 1994 for non-payment of Service Tax related to Renting of Immovable Property.

Analysis:
The petitioner challenged an Order-In-Original dated 10.03.2014 under the Finance Act, 1994, concerning non-payment of Service Tax for Renting of Immovable Property. Initially, the petitioner expressed willingness to clear the entire Service Tax liability and produced a demand draft before the Court. An interim order was passed on 24.06.2016, allowing the petitioner to re-validate the expired demand draft and submit it to the respondent Department. The petitioner complied with this order by paying the Service Tax amount and interest claimed. The Senior Panel Counsel for the respondents confirmed the payment compliance.

Analysis Continued:
While the respondents proceeded with the adjudication ex parte due to the petitioner not availing the opportunity to appear before the authority, the Court considered the unique circumstances. The petitioner had filed various legal actions, including a Petition for Eviction and a Civil Suit for recovery of arrears of rent, which were pending. Acknowledging the petitioner's compliance with the interim order and the challenging circumstances faced, the Court decided to afford the petitioner another opportunity for a fresh consideration of the matter on its merits.

Conclusion:
In light of the above analysis, the High Court allowed the Writ Petition, setting aside the impugned order and remanding the matter to the respondents for a fresh consideration. The respondents were directed to provide a personal hearing to the petitioner, address all raised issues, and proceed with the adjudication of the show cause notice in accordance with the law. No costs were awarded, and the connected Miscellaneous Petition was closed.

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