Ajit Kumar Jha vs. The Union Of INDIA

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CWJC/15420/2025HC PatnaGSTCNR BRHC01086955202513 May 2026Bench: MR. JUSTICE MOHIT KUMAR SHAH,MR. JUSTICE ARUN KUMAR JHA2 pages

AI SummaryRemanded

Facts

The petitioner, Ajit Kumar Jha, filed a writ petition before the Patna High Court challenging an order dated 30.06.2025 passed by the Commissioner (Appeals), Central GST and Central Excise, Patna. The impugned order had partially allowed the petitioner's appeal, modifying a demand for service tax (including cess) for the financial year 2016-17. The original demand was Rs. 35,66,063/-, which was reduced to Rs. 13,69,623/-. The order also modified the interest and penalty amounts. Specifically, the interest under Section 75 of the Finance Act was modified to the extent of service tax evaded, the penalty under Section 78 of the Finance Act was set at Rs. 13,69,623/-, and penalties of Rs. 10,000/- each were affirmed under Section 77(1)(a), Section 70 read with Rule 7C of the Service Tax Rules, 1994, and Section 77(1)(c)(ii) of the Finance Act.

Held

The Court granted the petitioner liberty to challenge the impugned order dated 30.06.2025, passed by the learned Commissioner (Appeals) of Customs, Central GST & Central Excise, Patna, by filing an appropriate appeal. The Court did not delve into the merits of the case or the specific contentions regarding the service tax demand, interest, or penalties. The reasoning for this decision is not elaborated upon, as the writ petition was disposed of at the initial stage upon granting the requested liberty. The operative direction was to permit the petitioner to pursue a statutory appeal. No specific issues were decided on their merits.

Key Issues

1. Whether the impugned order dated 30.06.2025, passed by the Commissioner (Appeals), Central GST and Central Excise, Patna, is legally sustainable? The petitioner sought to challenge this order. The petitioner's counsel argued that the impugned order needs to be challenged. The revenue did not present any arguments as the matter was disposed of at the outset. The petitioner's contention was that they wished to challenge the order passed by the Commissioner (Appeals). No specific provisions of the Finance Act or Service Tax Rules were explicitly debated in the judgment, other than those related to the penalties and interest imposed.

Sections Cited

Section 75, Section 78, Section 77(1)(a), Section 70, Rule 7C

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.15420 of 2025 ====================================================== Ajit Kumar Jha Son of Jivkant Jha, resident of village- Bahadurpur, P.S.- Bahadurpur, District- Darbhanga. ... ... Petitioner/s Versus 1. The Union of India through the Secretary, Ministry of Finance, Government of India. 2. The Chief Commissioner, Central GST Central Excise, Ranchi Zone, Patna. 3. The Commissioner (Appeal's) Central GST and Central Excise Patna II Patna. 4. The Deputy Commissioner, GST and CX Division, Darbhanga. 5. The Assistant Commissioner, Central Goods and Service Tax, Division Darbhanga. 6. The Superintendent (Appeals) Customs, Central GST and Central Excise, Patna. 7. The State of Bihar through The Executive Engineer, Rural Works, Department, Works Division, Muzaffarpur, East -2. 8. The Executive Engineer, Rural Works, Department, Works Division, Darbhanga - 1. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Girish Chandra Jha, Adv. For the Respondent/s-UoI: Mr. Anshuman Singh Sr. Standing Counsel CGST For the State : Ms. Shweta Anand A.C. to G.P. 13 ====================================================== CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH and HONOURABLE MR. JUSTICE ARUN KUMAR JHA

ORAL ORDER (Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH) 2 13-05-2026 The present writ petition has been filed seeking the following reliefs:- “That this is an application for issuance of appropriate writ/writs, order/orders, direction/directions for setting aside the order dated 30.06.2025 passed in Appeal No. 70/Pat/S.Tax/Appeal /2025-26 passed by Respondent no. 3

Patna High Court CWJC No.15420 of 2025(2) dt.13-05-2026 2/2 whereby and whereunder the appeal filed by the petitioner was partially allowed and the demand of total service tax (including cess) for the financial year 2016-17. was modified to the extent of Rs. 13,69,623/- from Rs. 35,66,063/- for services provided during the relevant period, and also modified the rate of interest under section 75 of the Finance Act to the extent of service tax evaded, further modified the penalty amount under section 78 of the Finance Act to Rs. 13,69,623, further affirmed penalty of Rs. 10,000/- under Section 77(1) (a) of the Finance Act, further affirmed penalty of Rs.10,000/- under section 70 of Finance Act read with rule 7C of Service Tax rules, 1994 and further affirmed the penality of Rs. 10000/- under section 77(1)(c)(ii) of the Finance act.”

At the outset, the learned counsel for the petitioner seeks liberty on behalf of the petitioner to challenge the impugned order dated 30.06.2025, passed by the learned Commissioner (Appeals) of Customs, Central GST & Central Excise, Patna by filing appropriate appeal. Liberty so sought is granted.

The writ petition stands disposed of.

kanchan/- (Mohit Kumar Shah, J) ( Arun Kumar Jha, J) U

Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.