Order Set Aside Due to Procedural Errors; Company to Resubmit Evidence for Tax Exemption Reconsideration in Six Weeks.

The HC set aside the order-in-original dated 23.03.2023, which confirmed the demand for service tax against the petitioner, a company involved in government works contracts. The court found procedural deficiencies, noting that the petitioner was not given a fair opportunity to present original documents supporting its claim for tax exemption. The case was remanded to respondent No. 1 for reconsideration, instructing a fresh decision after allowing the petitioner to submit relevant evidence. The process was ordered to be completed within six weeks, and the writ petition was allowed, closing any pending applications without costs.

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Issues involved: Challenge to the legality and validity of the order-in-original dated 23.03.2023 passed by respondent No. 1 regarding service tax.

Summary:
The petitioner, a company engaged in works contracts with Government departments, was issued a show cause notice for non-filing of service tax returns and non-payment of service tax. The petitioner contended that its services were exempt from service tax under a specific notification. However, the impugned order-in-original rejected this contention and confirmed the demand. The petitioner filed a writ petition challenging this decision.

The counsel for the petitioner argued that the petitioner was not given an opportunity to produce original supporting documents to prove the non-taxability of its services. On the other hand, the counsel for respondents stated that no documentary evidence was furnished by the petitioner, leading to the impugned order. The court noted conflicting paragraphs in the order-in-original and decided to grant the petitioner an opportunity to produce relevant documents supporting its claim of service tax exemption.

The High Court set aside the impugned order-in-original and remanded the matter back to respondent No. 1 for a fresh decision after giving the petitioner a chance to present the necessary documents. The court directed the entire process to be completed within six weeks. The writ petition was allowed, and any pending applications were closed without costs.

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