2022 (11) TMI 802 - HC - Service Tax

High Court dismisses writ petition challenging service tax demand from District Officer

The High Court dismissed the writ petition challenging the order-in-original demanding service tax, late fees, and penalties from a District Roads and ... Writ petition under Article 226 - appealable order and alternative remedy - delay and laches in seeking extraordinary relief - recall of interim order - non compliance with court directionsAppealable order and alternative remedy - delay and laches in seeking extraordinary relief - Writ petition filed after expiry of limitation when an appeal was available and not filed. - HELD THAT: - The impugned order in original dated 16.11.2018 is an appealable order. The petitioner has not filed any appeal and the writ petition was filed long after the period for filing an appeal had expired. In these circumstances, and having regard to the availability of an alternative statutory remedy in the form of appeal, the High Court was not inclined to entertain the petition filed belatedly. The Court consequently dismissed the writ petition on account of delay and inaction in availing the appellate remedy and related laches.Writ petition dismissed as not maintainable in view of delay and non availment of the appellate remedy.Recall of interim order - non compliance with court directions - writ petition under Article 226 - Whether the Court should continue the conditional stay granted on 24.03.2022 where the petitioner failed to comply with directions to identify responsible officials and to make the ordered deposit. - HELD THAT: - By order dated 24.03.2022 the Court issued conditional relief including an obligation on the petitioner to disclose the officials responsible for the failure to file appeal and to deposit 25% of the tax levied. The petitioner did not furnish the names of officials despite repeated directions and did not comply with the conditional requirements. In view of the petitioner's failure to comply with the court's directions and the writ being filed after expiry of the appellate limitation, the Court recalled its interim order of 24.03.2022 and refused to continue the stay.Order dated 24.03.2022 recalled; interim protection vacated for non compliance with court directions.Final Conclusion: The interim order dated 24.03.2022 is recalled and the writ petition is dismissed for delay and non compliance with court directions; a copy of the order is to be sent to the Chief Secretary, Government of Telangana; miscellaneous applications closed and no order as to costs. Issues:Challenging legality and validity of the order-in-original dated 16.11.2018 passed by respondent No.4; Non-filing of appeal against the order-in-original; Conditional stay granted; Failure to furnish names of officials responsible for not filing appeal; Dismissal of the writ petition.Analysis:The petitioner, a District Roads and Buildings Officer/Executive Officer in Telangana, challenged the legality of an order-in-original dated 16.11.2018, which classified the activity of allowing Right of Way for laying optic fiber cables as a taxable service. The order demanded service tax, late fees, interest, and penalties from the petitioner for the period from August 2012 to March 2016. The petitioner did not file an appeal against this order, leading to the filing of a writ petition long after the limitation period had expired.The High Court granted a conditional stay on the order-in-original and the consequential notice issued to the State Bank of India. The Court directed the petitioner to inform about the officials responsible for not filing the appeal and to deposit 25% of the tax levied within thirty days. However, the petitioner failed to provide the required information despite multiple opportunities, leading to the Court's decision not to entertain the writ petition.Ultimately, on 10.10.2022, the Court dismissed the writ petition, citing the failure to furnish the names of the officials responsible for not filing the appeal and the delayed filing of the petition after the expiration of the limitation period. The Court recalled its previous order granting a conditional stay and directed the dismissal of the writ petition. The Chief Secretary to the Government of Telangana was to be provided with a copy of the order, and any pending miscellaneous applications were to be closed without costs.