2024 (8) TMI 522 - HC - Service Tax

Extension of period of limitation under Section 73(4B)(d) of the Service Tax Act - extension in case of justifiable reasons and ground available with the Department - HELD THAT - The show cause notice in the instant case admittedly was issued during the pandemic period i.e., 22-12-2020. Further it also reflects that notices for personal hearing after the reply to the show cause notice was issued on 2-3-2021, 18-3-2021, 19-5-2021, 10-2-2023 and 16-8-2023, directing the petitioners to appear for personal hearing on 10-3-2023, 25-3-2023, 2-6-2021, 17-2-2023 and 28-3-2023 respectively. The petitioner for the initial period submits that since it was peak COVID period, the petitioner was not in a position to enter appearance before the authorities concerned for the personal hearing. If the petitioner themselves take advantage of the pandemic period for not appearing before the authorities, the same condition also prevailed with the Department for not concluding the proceedings within the period as is envisaged under Section 73(4B)(d). The period of limitation has been satisfactorily explained by the counsel for the department. The writ petition not entartained on its merits - The right of the petitioner to challenge the same by way of an appeal stands reserved and protected - petition dismissed.

Summary

The High Court of Telangana dismissed the writ petition challenging an order dated 20-9-2023, stating that the period of limitation under Section 73(4B)(d) of the Service Tax Act can extend beyond one year due to justifiable reasons, such as the pandemic. The petitioner's right to appeal is reserved, and the time spent on the writ petition will be excluded from the limitation period for the appeal.