THE HON’BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HON’BLE SRI JUSTICE G.M.MOHIUDDIN

ORDER:

Sri Simhadri Bharadwaja, learned counsel appears for Sri B. Krishna Reddy, learned counsel for petitioner.

Smt. Bokaro Sapna Reddy, learned Senior Standing Counsel for Income-tax appears for respondents.

2. Petitioner assails the impugned proceedings dated 26.02.2025, Annexure P.1, issued by the Superintendent of Central Tax, Himayatnagar, Hyderabad, respondent No.2, in O.C.No.50 of 2025, for recovery of arrears of revenue, on the ground that before issuance of the demand, no Order-In- Original or any anterior show cause notice was served upon the petitioner.

3. The petitioner referred to Section 37C of the Central Excise Act, 1944 (for short ‘the Act, 1944’), relating to mode of service of decisions, orders which applies to the proceedings under Service Tax in terms of Section 83 of the Finance Act, 1994.

4. Counter-affidavit was filed by the respondents on

11.08.2025. No rejoinder affidavit thereto has been filed.

5. Respondents in their counter-affidavit have made categorical denial to the contentions of the petitioners, at paragraph Nos.15, 16 and 19, which read as under:

“15. It is respectfully submitted that accordingly the Department has issued Show Cause Notice No. C. No. IV/9/108/2021-Third Party and DIN: 20211056YN000016531C 18.10.2021 demanding the service tax of Rs.14,56,875/- (inclusive of CESS) under Section 73(1). The Show Cause Notice was emailed to petitioner on 20.10.2021. The tax demanded in the show cause notice was confirmed by the adjudicating authority vide OIO No.278/2023-24-ST dated 30.09.2023.

16. It is respectfully submitted that the Respondent No.1 has issued letter OC.No.50/2025 having DIN: 20250256YN0000501599 dated 26.02.2025 for recovery of tax dues confirmed in the adjudication order after completion of the time limit to file an appeal before the appellate authorities for payment of tax dues. The letter was received by the petitioner on 28.02.2025.

19. It is respectfully submitted that the assertion made in respect of para 4, 5 and 6 of the Writ Petition, it is submitted that the contention of the petitioner that no Order in Original No.278/2023-24-S. Tax dated 30.09.2023 or any anterior show cause notice has been served on the petitioner is not acceptable as much as the Show Cause Notice dated 18.10.2021 was served via Speed Post No.EN438953104IN on 20.10.2021 and also sent to their registered e-mail ID “manojbang@me.com” on 20.10.2021. The said Show Cause Notice was not returned. Further, the petitioner was given three opportunities of personal hearing on 12.09.2023, 20.09.2023 and 27.09.2023, for which Personal Hearing Notices were dispatched through speed post on 06.09.2023, 18.09.2023 and 26.09.2023 respectively. However, the postal authorities have returned the said letters with a remark “No such person in this address”. Accordingly, adjudication proceedings were completed prior to the receipt of the said recovery of tax dues letter dated 26.02.2025 by the petitioner and Order In Original No.278/2023-24-ST was issued on 30.09.2023. The petitioner have not attended the personal hearings on the dates mentioned above. The subject Order in Original was passed ex-parte after observing the principles of natural justice and after giving them sufficient time i.e., 2 years from the date of Show Cause Notice. The said Order in Original was served to the petitioner via Speed Post No.EN438898629IN on 30.10.2023 to the registered address as per Section 37C of the Central Excise Act, 1944. However, the postal authorities had returned the said order with a remark “No such person in this address” and therefore it is understood that the petitioner had vacated their Principal place of business without intimation to the Department. The said Order in Original was also sent to their registered e-mail ID “manojbang@me.com” on 16.05.2024. Subsequently, after following the due procedures, action for recovery of arrears