The court set aside ex-parte service tax demand orders and remitted the matter to the show-cause notice stage, directing authorities to consider specific exemptions and legal criteria as established in previous similar judgments.

WRIT PETITION

CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A) QUASHING THE IMPUGNED ORDERS DTD. 29/01/2025 PASSED N MLR-EXCUS-000-APP-AS-131/2024-25 BY THE R2 AUTHORITY I.E THE HON'BLE COMMISSIONER OF CENTRAL GST AND CENTRAL EXCISE (APPEALS), IN A. NO. 11/2025/MR/ST, I.E., ANNEXURE-A AND ETC.

THIS PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

ORAL ORDER

Sri. Sushal Tiwari, learned counsel accepts notice for respondent No.1.

Sri. Aravind Chavan, learned counsel accepts notice for respondents 2 and 3.

2. It is the case of the petitioner that there has been adjudication under the provisions of the Finance Act and demand regarding service tax has been raised placing reliance on the inputs from the income tax returns. It is submitted that under similar circumstances, this Court in W.P.No.11154/2023 and connected matters has remitted the matter for reconsideration in light of the observations made and that identical order may be passed in the present matter also.

3. It is specifically contended that the order passed is an ex-parte order and the petitioner’s services are exempt in terms of the Mega Exemption Notification No.25/2012 dated 20.06.2012 and has drawn specific attention to Entry-14(b).

4. Admittedly, the order passed is an ex-parte order. Perused the order dated 03.07.2024 passed in W.P.No.11154/2023 and connected petitions.

5. This Court while disposing of the said petitions by remanding it to the stage of reply to the show cause notice had made certain observations to be kept in mind by the concerned officials. The observations made from para-10 onwards reads as follows:-

"10. The officers while disposing off the petitions to keep in mind the following:

1) Whether petitioners do not qualify under Section 65B(44) of the Finance Act, 1994 ?

2) Whether services are covered under negative list ?

3) Whether services are covered under the exemption list under the Notification No.25/2012-ST dated 28.06.2012 or under any other applicable Notifications?

4) Whether the person is liable to remit service tax in terms of Rule 2 (1) (d) read with applicable notification?

5) Whether claims are barred by limitation in terms of the law laid down by the Apex Court?

11. It is also clarified that disposal of present petitions must not be construed as having adjudicated any of the contentions including jurisdiction. All contentions of both sides on merits are kept open.

12. Needless to state, upon conclusion of proceedings, if any of the petitioners are still aggrieved, legal remedies are kept open. It is also clarified that wherever, replies to show-cause notice have not been made out, the same may be filed upon matter being relegated as noticed above.

13. Accordingly, the following:

ORDER

In light of observations made above, the writ petitions relating to challenge to show-cause notice, such matters will stand relegated to the officers to be designated in terms of the observations made in para 8 above, at the same stage. Accordingly, such of the petitions at Sl.No.1 to 5 in Column No.1 of the table relating to challenge to show-cause notice are disposed off.

Insofar as such writ petitions as detailed in Column 2 of the table relating to challenge to Orders-in-Original, in light of the discussion made above, the Orders-in-Original stand set aside and the matters ar