2023 (3) TMI 644 - HC - Service Tax

Appropriate Forum - High Court or not - Levy of service tax - manpower recruitment /supply agency service - construction services other than residential complex, including commercial / industrial buildings or civil structures / erection/ commissioning and installation service - Works Contract service - HELD THAT - No useful purpose would be served either to the appellant or to the revenue in keeping the writ petition pending since the order impugned in the writ petition is an order of adjudication and the correctness of such an order is required to be tested by the appropriate appellate authority, who will be able to re-appreciate the factual position and also decide on any jurisdictional issue that may be raised by the appellant. The appeal and the writ petition are disposed of by directing the appellant to file an appeal to the appropriate appellate authority challenging the order dated 29th April, 2022 and such appeal shall be filed within a period of three weeks from the date of receipt of server copy of this judgment and order after complying with the pre-deposit condition of paying 7.5% of the disputed tax.

Summary

Issues involved:
The appeal against an order directing that the admission and pendency of the writ petition will not affect pending proceedings.

Summary:

Issue 1: Adjudication order and protection of appellant's interest
The order under challenge dated 29th April, 2022, found the appellant engaged in various services and imposed service tax and penalty. The appellant sought protection of their interest until the writ petition is heard. The Court held that the correctness of the order needs to be tested by the appellate authority, which can re-evaluate the facts and address jurisdictional issues.

Issue 2: Disposal of appeal and writ petition
The Court directed the appellant to file an appeal challenging the order within three weeks, subject to a pre-deposit condition. The appellant can raise all points, including jurisdiction, in the appeal. The respondents were prohibited from taking coercive action during this period. The appellate authority was instructed to decide the appeal on merits without rejecting it based on limitation, and the appellant was granted a personal hearing.

Conclusion
The appeal and writ petition were disposed of with the above directions, and no costs were awarded. The parties were to receive a certified copy of the order promptly upon compliance with legal formalities.