2023 (11) TMI 1131 - HC - Service Tax

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 ... Legality and validity of the order-in-original dated 23.03.2023 passed by respondent No. 1 - respondent No. 1 did not put the petitioner on notice regarding production of original supporting documents - non-taxability of the services rendered - HELD THAT:- The ends of justice would be met if an opportunity is granted to the petitioner to produce the relevant documents in support of its claim that services rendered by the petitioner are exempted from service tax in terms of the notification dated 20.06.2012. The impugned order-in-original dated 23.03.2023 is set aside - matter remanded back to the file of respondent No. 1 who shall give due opportunity of hearing to the petitioner and thereafter pass a fresh order in accordance with law - petition allowed by way of remand. 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.