Madras High Court grants relief to TANGEDCO on Service Tax Case [Read Order]

Service Tax Demand - Madras High Court - Service Tax -TANGEDCO - taxscan

In a partial relief to the Tamil Nadu Generation and Distribution Corporation Ltd. (TANGEDCO), the Madras High Court quashed the Service Tax Demand as no opportunity of personal hearing was afforded.

The petitioner, TANGEDCO contended that it did not submit their explanation or defence statement and requested time on the ground that some Writ Petitions are pending. However, without granting any further time, the respondent has passed the final order and therefore, the writ petitioner is constrained to move the present Writ Petition.

Mr.K.Jayachandran, counsel for the petitioner urged that view of the pendency of the Writ Petitions questioning the authority of the respondents demanding Service Tax to be paid by the petitioners, the petitioner has not submitted their defence statement, nor produced any documents, enabling the authority to consider the issues. However, the final order impugned is passed unilaterally without considering any of the points in favour of the petitioner. Thus, the matters are to be remanded back.

The Single Judge Bench of Justice S.M.Subramaniam opined that in all other Writ Petitions where the show cause notices are questioned before this Court, this Court passed an order, directing the petitioners to submit explanations and by following the procedures as contemplated under the Act, the final order is to be passed. In view of the said order, the present Writ Petition is also to be remanded back for a fresh consideration by the authorities.

The court held that the impugned Order-in-Original, passed by the respondent in proceedings is quashed and the matter is remanded back to the respondent for fresh consideration by providing an opportunity to the writ petitioner to submit their explanations, documents and evidences and by affording opportunity of personal hearing and thereafter, pass final orders in the manner known to law.

The court directed the petitioner to submit their explanations, documents, evidences, as well as the legal grounds, if any, within a period of eight weeks from the date of receipt of a copy of the order and on receipt of any such explanations, documents and evidences, the respondent is directed to provide opportunity to the petitioner, including personal hearing and thereafter, consider the issues, take a decision and pass final orders as expeditiously as possible.

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