M/S. Shree Amman Associates vs. The Assistant Commissioner Of CGST And Central Excise

This Writ Petition is taken up for final hearing at the time of admission with the consent of the learned counsel for the petitioner and learned Senior Standing Counsel for the respondent.

The petitioner is before this Court against the impugned Order-in- Original dated 17.03.2023 bearing reference in No. MAD STU ASC 10-2023 of the respondent, whereby the proposal in the Show Cause Notice in SCN Sl.No. 18/2017-ST dated 27.12.2017 issued for the tax period from April 2014 to March 2017 has been confirmed in the absence of reply. The operative portion of the impugned order reads as follows: 2/6 https://www.mhc.tn.gov.in/judis ORDER I confirm the demand of Service Tax of Rs. 8,38,606/- (Rupees Eight Lakh Thirty Eight Thousand Six Hundred and Six only) (Service Tax: Rs. 7,95,972/- Education Cess: Rs. 36/- + SHE Cess: Rs. 18/- SB Cess: Rs. 26,174/- + KKC: Rs. 19,436) short payment during the period from April, 2014 to March, 2017 under Section 73(2) of Finance Act. 1994; ii. I confirm the demand of interest at appropriate rate[s] [on the above confirmed demand of Rs. 8,38,606/-] under Section 75 of Finance Act, 1994; iii. I impose a penalty of Rs. 8,38,606/- under Section 78 of Finance Act, 1994 for short payment of service tax with intention to evade payment of service tax; iv. I impose a penalty of Rs. 10,000/- under Section 77(2) of Finance Act, 1994 for their failure to submit correct taxable value in ST-3 Returns; v. I drop the proposal to impose penalty under Section 76 of Finance Act, 1994 since penalty under Section 78 of the Finance Act, 1994, is imposed; vi. However, in respect of Penalty imposed vide (ii) above, I give option to the taxpayer under the second pr'viso to section 78 (1) of the Act that the penalty can be reduced to 25% Service Tax demanded / confirmed if he pay the Service Tax demanded / confirmed along with interest as well as the reduced penalty of 25% Service Tax demanded /confirmed within 30 days of the receipt of this Order

At this stage, the learned counsel for the petitioner submits that the 3/6 https://www.mhc.tn.gov.in/judis petitioner is willing to pre-deposit 50% of the disputed tax as a condition for de novo adjudication.

The learned counsel for the petitioner has also made an endorsement to that effect in the Court Bundle, which is extracted hereunder:-

In view of the above, the impugned order is quashed and the case is remitted back to the respondent to pass a fresh order subject to the petitioner depositing 50% of the disputed tax in cash from the petitioner's Electronic Cash Register within a period of thirty (30) days from the date of receipt of a copy of this order.

Within such time, the petitioner shall also file a reply to the Show Cause Notice in SCN Sl.No.18/2017-ST dated 27.12.2017 together with requisite documents to substantiate the case by treating the Impugned Order dated 17.03.2023 as an addendum to the Show Cause Notice dated 27.12.2017. 8. In case the petitioner complies with the above stipulations, the 4/6 https://www.mhc.tn.gov.in/judis respondent shall proceed to pass a final order on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months of such reply / pre-deposit.

In case the petitioner fails to comply with any of the stipulations, the respondent is at liberty to proceed against the petitioner to recover the tax in accordance with law as if this Writ Petition was dismissed in limine today.

Needless to state, before passing any such order, the respondent shall give due notice to the petitioner and the petitioner shall cooperate with the respondent.

This Writ Petition stands disposed of, with the above observations. No costs. Consequently, connected Writ Miscellaneous Petitions are closed. Index : Yes / No 10.08.2026 Internet : Yes / No apd 5/6 https://www.mhc.tn.gov.in/judis C.SARAVANAN, J.