2024 (2) TMI 20 - HC - Service Tax

Seeking permission to withdraw writ petition - Maintainability of petition - SCN issued beyond the period of limitation prescribed under Section 73 of the Finance Act, 1994 - HELD THAT - The petition is dismissed as withdrawn reserving the right of the petitioner to take all permissible pleas in law in response to the show cause notice. Petitioner shall file a reply to the show cause notice within a period of 30 days from today. Thereafter, it would be open to the adjudicating authority to adjudicate the show cause notice including the question of invocation of extended period of limitation in accordance with law, after giving an opportunity of personal hearing to the petitioner, without being influenced by anything stated in this order. Petition disposed off.

Summary

Issues Involved:
The issues involved in the judgment are the impugning of a show cause notice based on the period of limitation prescribed under Section 73 of the Finance Act, 1994 and the maintainability of the petition due to the application of the proviso to Section 73(1) and the extended period of limitation.

Impugning Show Cause Notice:
The petitioner challenged a show cause notice dated 27.04.2021, arguing that it exceeded the period of limitation specified under Section 73 of the Finance Act, 1994.

Maintainability of the Petition:
The respondents raised a preliminary objection regarding the maintainability of the petition, stating that the show cause notice was issued using the proviso to Section 73(1) and applying the extended period of limitation. The petitioner was advised to raise this plea before the Adjudicating Authority.

Decision and Directions:
The petitioner sought to withdraw the petition while reserving the right to raise all permissible pleas, including the invocation of the extended period of limitation before the Adjudicating Authority. The petition was dismissed as withdrawn, allowing the petitioner 30 days to file a reply to the show cause notice. The adjudicating authority was instructed to consider the show cause notice, including the question of the extended period of limitation, after providing a personal hearing to the petitioner.

Court's Clarifications:
The Court clarified that it did not assess the merits or contentions of either party and reserved all rights and contentions. It was emphasized that the time spent on the petition would not count towards the limitation period specified under Section 73(4B)(b) of the Finance Act, 1994.

Disposition:
The petition was disposed of with the above terms, ensuring that the petitioner could address the show cause notice within the stipulated timeframe and have their arguments heard by the adjudicating authority.