Maripandi. D vs. The Secretary

Facts

The petitioner, D. Maripandi, filed a writ petition seeking a direction to the Ministry of Finance to dispose of his representation dated July 10, 2021. The representation concerned the restoration of the benefit of exemption under Serial No. 12 of Mega Exemption Notification No. 25/2012-ST dated June 20, 2012, which was diluted by subsequent notifications dated March 1, 2015, and March 1, 2016. The petitioner had provided services to the State Public Works Department. A Division Bench of the High Court had previously dismissed a batch of writ petitions challenging Orders in Original related to this matter. The petitioner, as a service provider, was obligated to pay service tax but was entitled to recover it from the department to whom services were rendered.

Held

The Court disposed of the writ petition by permitting the petitioner to file a suitable representation before the Tamil Nadu Public Works Department. The purpose of this representation is to seek reimbursement of the service tax that the petitioner had to bear. This reimbursement is necessitated by the withdrawal of the exemption under Mega Exemption Notification No. 25/2012-ST, dated June 20, 2012, through the subsequent notifications dated March 1, 2015, and March 1, 2016. The Court did not decide on the merits of the petitioner's claim for exemption restoration but rather directed him to pursue reimbursement from the department that received his services. The ratio decidendi is that in cases where exemptions are withdrawn and service tax becomes payable by the service provider, the recourse for recovery of such tax lies with the department to whom the services were rendered, and the High Court, in its writ jurisdiction, can direct the appropriate authority to consider such claims for reimbursement.

Key Issues

1. Whether the petitioner is entitled to have his representation dated 10.07.2021 disposed of by the First Respondent (Ministry of Finance) concerning the restoration of exemption under Serial No. 12 of Mega Exemption Notification No. 25/2012-ST, as diluted by Notification No. 6/2015-Service Tax and Notification No. 9/2016-Service Tax. Petitioner's Contention: The petitioner sought a direction for the disposal of his representation to restore the benefit of the exemption notification. He had provided services to the State Public Works Department and was seeking to recover the service tax paid due to the withdrawal of the exemption. Revenue's Contention: No specific argument was recorded for the respondents regarding the petitioner's entitlement to the exemption or the disposal of the representation. The respondents were represented by a Standing Counsel, but their arguments are not detailed in the judgment.