2018 (12) TMI 1997 - HC - GST

Order Set Aside Due to Procedural Lapses; Case Remanded for Reconsideration with Opportunity for Fresh Hearing.

P. Narasa Reddy, S/o. P. Konda Reddy Versus Union of India, Ministry of Finance, Department of Revenue, rep. by its Secretary to Government the Commissioner of Central Excise & Service Tax (Appeals), Andhra Pradesh; The Assistant Commissioner, Customs, Central Excise and Service Tax, Andhra Pradesh

P. Narasa Reddy, S/o. P. Konda Reddy Versus Union of India, Ministry of Finance, Department of Revenue, rep. by its Secretary to Government the ... Issues:Challenge against Order-in-Original under Finance Act, 1994 - Failure to avail alternative remedies - Violation of principles of natural justice - Lack of jurisdiction - Lack of authority - Applicability of notification No. 32/2010-ST.Analysis:The judgment involves a challenge against an Order-in-Original passed by the 3rd respondent under the Finance Act, 1994, invoking Sections 73(2), 75, 77(1), and 77(2) along with relevant Rules. The petitioner, a service provider, filed a writ petition against the impugned order dated 07.03.2017 after being unable to pursue an appeal due to a delay issue, utilizing a Full Bench decision precedent. The Court acknowledged the importance of exhausting alternative remedies before resorting to writ petitions, emphasizing criteria like violation of natural justice, lack of jurisdiction, or authority to determine writ jurisdiction.The central legal question raised pertains to the authority of law regarding the levy, focusing on the applicability of notification No. 32/2010-ST dated 22.06.2010. The notification exempts taxable services provided for the distribution of electricity from service tax under Section 66 of the Finance Act, 1994. The petitioner's entitlement to this exemption was not addressed in the impugned order due to the petitioner's failure to respond to the show cause notice and attend the personal hearing.The Court directed the 3rd respondent to re-examine the applicability of the notification and granted the petitioner an opportunity to file replies by a specified date, followed by a fresh personal hearing and orders. The impugned order was set aside, and the matter was remanded back to the 3rd respondent for reconsideration. The judgment concluded with the closure of pending miscellaneous petitions and a decision of no costs to be imposed.