The Tripura High Court (HC) in a recent ruling quashed the service tax demanded want of Jurisdiction as the contractual works to the railway was within Assam.
Shri Keshab Purkayastha, the petitioner challenged the legality and validity of the order dated 25.03.2022 issued by the respondent. The petitioner executed several contractual works under the N.F. Railways within the State of Assam in the financial year 2016-2017. An issue was raised by the authorities of the office of the Commissioner, Central GST and Central Excise Commissioner ate, Guwahati, Assam regarding payment of service tax amounting to Rs.2,70,27,400.50/- to be paid by the petitioner.
Under a regular proceeding, the Principal Commissioner found that by the Clause-14 (a) of Mega Exemption Notification No.25/2012 dated 20.06.2012 issued by the Government of India, the petitioner has been exempted from payment of the above mentioned service tax vide order dated 21.09.2022.
The contract works executed in the State of Assam, the respondent No.3 i.e. the Commissioner, CGST & Central Excise, Agartala again raised demand to the petitioner for payment of service tax amounting to Rs. 2,70,27,400.50/-.
It was contended that without taking into consideration, the order dated 21.09.2022 issued by the Principal Commissioner at Guwahati, respondent No.3 acted beyond his jurisdiction and issued the palpable illegal order dated 16.11.2022.
The petitioner prayed for a reconsideration of the case that the petitioner cannot be made liable to pay any Service Tax given the exemptions granted by the Government of India in the Ministry of Finance, vide the Mega Exemption Notification No.25/2012 dated 20.06.2012 wherein, certain services have been excluded from the purview of service tax.
Justice Arindam Lodh set aside the impugned demand since a non-speaking order has been passed without dealing with the exemption clauses. Further held that the respondents shall consider the explanation in the light of the exemption notification No.25/2012 and then pass a speaking order after allowinga personal hearing.
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