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2021 Supreme(Del) 1032
IN THE HIGH COURT OF DELHI AT NEW DELHI
Manmohan, Navin Chawla, JJ.
M/s Pyramid Buildtech Pvt. Ltd. & Ors. - Appellants
Versus
Union Of India & Anr. - Respondents
Writ Petition (Civil) No. 6895 of 2021; Civil Miscellaneous No. 21794 of 2021
Decided On : 23-07-2021
N.K. Sharma, Advocate, Harpreet Singh, Advocate
The court emphasized the importance of following adjudication procedures and principles of natural justice in tax matters, while also considering the interest of justice in granting opportunities to the parties involved.
Headnote:
Service Tax - Adjudication Procedure - Principles of Natural Justice
Fact of the Case:
The petitioner challenged the order confirming the demand of service tax and penalties. The petitioner argued that the order was passed without following the adjudication procedure and in violation of principles of natural justice.
Finding of the Court:
The court granted a last and final opportunity to the petitioner to appear before the respondent, subject to payment of costs to the Delhi High Court Bar Association Pandemic Relief Fund.
Issues: Adjudication procedure under Section 33A(1) and Section 37C of the Central Excise Act, 1944, violation of principles of natural justice, and liability of service tax on procurement of land.
Ratio Decidendi: The court considered the failure of the petitioner to appear before the respondent and the high-pitched demand, granting a final opportunity in the interest of justice.
Final Decision: The writ petition along with pending application stands disposed of with the granted opportunity to the petitioner.
JUDGMENT
Manmohan, J. - The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the order dated 09th March 2021 passed by Commissioner Central Goods and Service Tax, Delhi East confirming the demand of service tax and penalties amounting to Rs.21,51,01,611. Petitioner also seeks a direction to the Respondent no.2 to decide the matter on merits by giving a fair hearing to the petitioners and abide by the Principles of Natural Justice.
3. Learned counsel for the petitioner submits that the impugned order has been passed without following the adjudication procedure under Section 33A(1) and Section 37C of the Central Excise Act, 1944 as well as in violation of principles of natural justice. He also submits that service tax is not liable on procurement of the land from land owners and no service tax can be demanded merely upon an agreement which was not performed.
4. A perusal of the paper book reveals that it is the case of the Revenue Department that though summons had been served upon the petitioner on 17th September, 2018, yet it had neither appeared before the respondentDepartment nor any documents had been filed on its behalf. It was only after the respondent-Department contacted the petitioner s auditor, that he appeared and made a statement. Later also efforts were made to serve the petitioner with notices, however, the petitioner was not available at the given address.
5. However, keeping in view the fact that the demand is a high-pitched one and subsequent notices issued by the respondent to the petitioner had not been served upon the petitioner or its authorised representative before the hearing, this Court in the interest of justice, grants last and final opportunity to the petitioner to appear before the respondent no.2 on 2nd and th August, 2021 at 11.00 A.M., subject to payment of costs of Rs.2,50,000/- to Delhi High Court Bar Association Pandemic Relief Fund (A/c No.15530110152195; IFSC Code-UCBA0001553) within a week.
6. With the aforesaid directions, the present writ petition along with pending application stands disposed of.
7. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail
