LIMITATION FOR ADJUDICATION UNDER SERVICE TAX

[THYAGARAJAN KALYANASUNDARAM]

Dear experts,

One of my client who got the order from the service tax department for the FY 2015-16 on 27/09/2022 against which the SCN was issued on 22/04/2021 but it was not delivered due to the proprietor was deceased and hospitalised since 19th April 2021.  Now, can I challenge the order for the reason of limitation also the adjudication order was issued after the period of one year u/s 73(4B) of service tax.  Please advice me on this issue to come out with any cited case laws.                   

Thanks in advance.

AI Summary

Service tax adjudication order challenged after proprietor's death during proceedings raises validity questions A service tax practitioner sought advice regarding challenging an adjudication order dated September 27, 2022, for FY 2015-16. The show cause notice was issued April 22, 2021, but the proprietor was hospitalized from April 19, 2021, and died May 5, 2021. The legal heir was unaware of proceedings. Key issues discussed included: limitation under Section 73(4B) requiring adjudication within one year of notice; improper service at residential address instead of registered office; whether extended five-year limitation applies for non-filing returns without willful suppression; and validity of proceedings against deceased person. Experts noted recent Delhi High Court ruling emphasizing adherence to statutory time limits, while acknowledging 'where possible' language creates hurdles. The consensus suggested challenging on grounds of proceedings against deceased person having stronger legal precedent than limitation arguments.