2022 (9) TMI 679 - HC - Service Tax

Levy of Central Excise Duty - execution of contract of earth work and supply of manpower services to various Public Sector Undertakings situated at Paradeep and also State Government - demand on the basis of third party data received from Central Board of Direct Taxes - applicability of Mega Exemption Notification No.25/2012- Service Tax, dated 20th June, 2012, published in the Gazette of India, Extraordinary, vide GSR No.467(E), dated 20th June, 2012 - HELD THAT - On the resumed hearing today, Mr. Radheyshyam Chimanka, Senior Standing Counsel (Central Excise, Customs Service Tax) on instruction submitted that the order dated 24th May, 2022 vide Annexure-1 has been passed due to inadvertence which is liable to be quashed. This Court has no other option left but to quash in Order-in-Original pertaining to the Financial Year 2014-15 - Petition allowed.

Summary

Issues:
Challenge to Order-in-Original dated 24th May, 2022 under Article 226/227 of the Constitution of India; Exemption under Mega Exemption Notification No.25/2012- Service Tax; Jurisdiction of Adjudicating Authority; Double Assessment Orders for the same Financial Year 2014-15.

Analysis:
The petitioner, a partnership firm engaged in civil works and manpower services, challenged the Order-in-Original dated 24th May, 2022, passed by the Assistant Commissioner of GST & Central Excise. The petitioner claimed exemption under Mega Exemption Notification No.25/2012- Service Tax for the work done during the Financial Year 2014-15. The Adjudicating Authority imposed a demand of Rs.26,37,369/- under Section 73, along with penalties under Sections 77(1)(c)(ii), 77(1)(a), 70, and 78 of the Finance Act, 1994. The petitioner had already filed an appeal against the initial order, and while it was pending, a second order was issued by the same authority on 24th May, 2022, raising similar demands and penalties for the same period.

The petitioner contended that having two Assessment Orders for the same Financial Year was impermissible, especially when the first order was already sub judice before the Appellate Authority. The High Court, upon hearing the matter, noted the duplication of orders and stayed the operation of the second order dated 24th May, 2022. The Senior Standing Counsel for Central GST admitted the inadvertence in passing the second order and agreed to its quashing.

Consequently, the High Court, considering the fair submission, quashed the Order-in-Original dated 24th May, 2022, pertaining to the Financial Year 2014-15. The writ petition filed by the petitioner was allowed, and an urgent certified copy of the order was directed to be issued as per rules.