2023 (10) TMI 999 - HC - Service Tax

Principles of natural justice - show-cause notice and personal hearing notices were never served on the petitioner - HELD THAT - It appears that petitioner neither responded nor submitted data sought for in the letter, dated 09.12.2020 - the petitioner failed to respond to the notices issued by the respondent No. 1 and therefore, respondent No. 1 proceeded with adjudication and passed the impugned order- in-original, dated 20.06.2022. The explanation offered by the petitioner that after receipt of impugned order, the same was misplaced inadvertently and therefore, he could not take further steps and thus, delay caused in filing present writ petition, does not inspire confidence of this Bench, considering the conduct of the petitioner even after service of the show-cause notice, personal hearing notices and order in original. There are clear latches, defaults on the part of petitioner. Firstly, in not availing alternate efficacious remedy of filing appeal before the Commissioner (Appeals) and secondly, unexplained delay in approaching this Court. In considered opinion of this Bench, the writ petition is devoid of any merits and no grounds are made out to interfere with the impugned order - Petition dismissed.

Issues Involved:
The issues involved in the judgment are the challenge to an order-in-original passed under the Finance Act, 1994 and the demand notice issued in relation to service tax liability for certain financial years.

Details of the Judgment:

Challenge to Order-in-Original:
The petitioner, a company engaged in specific services, challenged the order-in-original passed by respondent No. 1 confirming a demand of service tax for certain financial years. The order also imposed penalties for non-payment of service tax and willful suppression of facts regarding taxable services.

Delay in Filing Writ Petition:
The petitioner claimed that they received the impugned order belatedly due to misplacement and sought condonation of the delay in filing the writ petition. They contended that a show-cause notice issued earlier was not received by them, leading to the delay.

Violation of Principles of Natural Justice:
The petitioner argued that they were not served with show-cause notice and personal hearing notices, depriving them of the opportunity to respond. They relied on various judgments to support their claim that the impugned order was passed in violation of principles of natural justice.

Contentions of Respondent:
The respondent contended that the show-cause notice and personal hearing notices were duly served on the petitioner through registered e-mail and postal services. They provided evidence of sending the notices and argued that the petitioner's claim of non-receipt was incorrect.

Observations of the Court:
The Court noted that the petitioner failed to respond to the information requests and notices sent by the respondent, leading to the passing of the impugned order. Despite receiving the order, the petitioner did not avail the appeal remedy within the stipulated time, raising questions about the delay in approaching the Court.

Decision of the Court:
The Court found no merit in the petitioner's arguments and dismissed the writ petition, citing lack of grounds to interfere with the impugned order. The Court highlighted the petitioner's failure to utilize the available remedies and the unexplained delay in challenging the order.

Conclusion:
The Court dismissed the writ petition, emphasizing the lack of merit and grounds for interference with the impugned order. The petitioner's conduct, including not availing the appeal remedy and the delay in approaching the Court, were cited as reasons for the dismissal.

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