2016 (5) TMI 513 - HC - Service Tax

Challenge to the recovery notices without challenging the order-in-original - service tax was collected but not paid - Held that - without challenging the original order dated 28.02.2007, the petitioner cannot challenge the consequential order dated 04.04.2016 and it could be seen that the petitioner did not pay the amount in spite of repeated reminders sent by the respondents. - Writ petition dismissed - Decided against the assessee.

Summary

Issues:
Challenge to the impugned notice for non-payment of Service Tax and penalty.

Analysis:
The petitioner, a Civil Contractor, was registered as a dealer under the Tamil Nadu General Tax Act, 1959. In 2005-2006, the petitioner failed to pay Service Tax, leading to a notice from the first respondent demanding payment. The petitioner complied with the initial demand but was later asked to pay a substantial amount for uncollected Service Tax and Educational Cess. The petitioner contested the consequential order issued in 2016 under Section 87 of the Finance Act.

Upon review, it was noted that the petitioner did not respond to reminders to provide evidence of payment or settle the dues. The original order in 2007 required payment of interest and penalty, which the petitioner did not fulfill. The Standing Counsel for the respondents argued that since the petitioner did not challenge the original order, the current Writ Petition seeking to set aside the 2016 consequential order should be rejected.

The court agreed with the respondents, stating that without challenging the original order, the petitioner cannot contest the 2016 consequential order. The petitioner's failure to make payments despite reminders further weakened the case. Consequently, the court found no merit in the Writ Petition and dismissed it without costs, closing the connected miscellaneous petition.