2019 (1) TMI 915 - HC - Service Tax

Maintainability of petition - availability of statutory appellate remedy - Held that - Since the petitioner has chosen to pay the tax liability and interest and they are aggrieved only against the imposition of penalty, this Court is of the view that an opportunity may be given to the petitioner to agitate the matter before the Appellate Authority, by filing a regular appeal. Therefore, without expressing any view on the merits of the contentions raised by the petitioner as against the imposition of penalty, this writ petition is disposed of by granting liberty to the petitioner to file a statutory appeal before the concerned Appellate Authority - petition disposed off.

Summary

Issues:
Challenge to Order-in-Original confirming service tax liability, interest, and penalty - Jurisdiction of High Court to entertain writ petition post statutory appeal provision.

Analysis:
The petitioner challenged an Order-in-Original confirming a service tax liability of ?15,04,591 along with interest and a penalty representing 100% tax liability. The High Court noted that a statutory appeal lay before the Commissioner (Appeals) against the impugned order. However, the petitioner failed to file the appeal in time, leading to the Court's reluctance to entertain the writ petition, especially when the points raised concerned the order's merits rather than jurisdictional issues.

The petitioner argued financial constraints prevented the immediate filing of the appeal and expressed willingness to pay the tax liability and interest in installments if the penalty was revoked. The Court emphasized that such contentions should be raised before the Appellate Authority through a statutory appeal, granting the petitioner liberty to file an appeal within two weeks. The Court refrained from expressing any view on the merits of the penalty imposition, directing the Appellate Authority to consider the appeal without limitation constraints and decide on the matter within six weeks after filing, ensuring due opportunity for the petitioner to be heard.

In conclusion, the High Court dismissed the writ petition, advising the petitioner to pursue the statutory appeal route for addressing concerns regarding the penalty imposition. The judgment highlighted the importance of following the statutory appeal process for matters falling within its purview, allowing for a comprehensive review of the issues by the Appellate Authority.