Shri Mithesh Kumar vs. The Commissioner Of Central GST And Central Excise (Appeals)

Held

The Court held that the present writ petition is identical to the one decided by the co-ordinate bench in M/s. Karnataka Chinmaya Seva Trust vs. Joint Commissioner of Central Tax. Consequently, the petition deserves to succeed on the same lines with the same relief that was granted in the prior judgment. The prior judgment had set aside orders-in-original and relegated matters to designated officers for reconsideration from the stage of show-cause notice. It also directed that all contentions on merits, including jurisdiction, were kept open, and legal remedies remained available upon conclusion of proceedings. The Court noted that the previous judgment involved a large number of cases where the Union of India had proposed a mechanism for resolution, including the constitution of a team of officers competent to pass orders without reference to territorial jurisdiction, to be completed within three months. The Court also listed specific points for the designated officers to consider, such as whether the petitioners qualified under Section 65B(44) of the Finance Act, 1994, whether services were covered under the negative list or exemption notifications, liability to remit service tax, and whether claims were barred by limitation.

Facts

The petitioner, Shri Mithesh Kumar, filed a writ petition challenging an order in appeal dated June 25, 2025, passed by the Commissioner of Central GST and Central Excise (Appeals) and an order in original dated April 4, 2022, passed by the Deputy Commissioner of Central Excise and Central Tax. The petitioner argued that the issues in his case were covered by a previous judgment of a co-ordinate bench of the High Court in the case of M/s. Karnataka Chinmaya Seva Trust vs. Joint Commissioner of Central Tax. The respondents did not dispute this position. The previous judgment dealt with numerous writ petitions challenging show-cause notices and orders-in-original related to service tax liability under the Finance Act, 1994, initiated based on information from the Central Board of Direct Taxes (CBDT) via Form 26AS/Income Tax returns.

Key Issues

1. Whether the writ petition, challenging orders related to service tax liability under the Finance Act, 1994, is squarely covered by the judgment of a co-ordinate bench in M/s. Karnataka Chinmaya Seva Trust vs. Joint Commissioner of Central Tax? The petitioner contended that the present case is identical to the matters decided in the aforementioned judgment and therefore, the same relief should be granted. The respondent conceded that the petition is identical to the one decided by the co-ordinate bench and did not dispute the petitioner's position. The co-ordinate bench's judgment, in turn, dealt with the issue of whether show-cause notices and orders-in-original for service tax, based on CBDT data, were validly issued, considering contentions regarding application of mind, verification of accounts, and the scope of taxable services under the Finance Act, 1994, including exemptions and limitation periods.