Apple Tree Educational vs. Commissioner Of Central Tax
Facts
The petitioner, Apple Tree Educational Society, filed a writ petition challenging an Order-in-Original dated 08/03/2022, issued by the Commissioner of Central Tax, which imposed service tax. The petitioner also challenged a subsequent demand letter dated 04/09/2022, issued by the Superintendent of Central Tax. The petitioner contended that the notice for personal hearing was not served, thus denying them an opportunity to defend themselves. They also claimed to be an educational institution falling under an exempted category as per a Master Circular dated 10.06.2011. The respondents are the Commissioner and Superintendent of Central Tax.
Held
The Court held that the impugned Order-in-Original dated 08.03.2022 was passed in violation of the principles of natural justice. The judgment noted that the Order-in-Original itself stated that the notice for personal hearing was returned undelivered by postal authorities, and the service provider (petitioner) neither submitted a reply nor attended the hearing. Consequently, the Court found that the petitioner was not afforded an opportunity to explain or defend themselves. The Court set aside the impugned order and remitted the matter back to the respondent No. 1. The Court directed that the set-aside Order-in-Original be treated as a notice for personal hearing, and the petitioner was directed to submit their reply by 30.10.2023. The respondent No. 1 was then to proceed in accordance with law. The issue regarding the exemption under the Master Circular dated 10.06.2011 was not expressly decided as the matter was remitted on procedural grounds.
Key Issues
1. Whether the impugned Order-in-Original No. 5412021-22-Adjn(Commr)-ST dated 08/03/2022 is illegal and arbitrary for violation of principles of natural justice, specifically concerning the non-service of notice for personal hearing, as argued by the petitioner? 2. Whether the petitioner, being an educational institution, is exempt from service tax under the Master Circular dated 10.06.2011, as contended by the petitioner? The petitioner argued that the notice for personal hearing was not served, preventing them from presenting their case. They also asserted their exemption as an educational institution. The respondents, represented by the learned Standing Counsel for CBIC, did not record any specific arguments in the judgment regarding the service of notice or the exemption claim.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
[ 3386 I IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Juri iction) FRIDAY, THE SIXTH DAY OF OCTOBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P. SAM KOSHY AND THE HONOURABLE SR] JUSTICE LAXMI NARAYANA ALISHETW WRIT PETITION NO: 27457 OF 2023 Between: AND 1. Apple Tree Educational, Society Plot No. 199, Anjali Gardens, Puppalguda, Rajendra Nagar Mandal, Manikonda, Beside Lanco Hilts, Hyderabad--S00 089. ...PETITIONER Commissioner of Central Tax, Ranga Reddy GST Commissionerate, Posnett Bhavan, Tilak Road, Ram Kote, Hyderabad -500 001 Superintendent of Central Tax, 10-3-301 -303, 4th Floor, Serene Heights, Humayun Nagar, Maserb Tank, Hyderabad - 500 028. 2 ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ, order or direction, more particularly in the nature of writ of mandamus declaring the impugned Order-in-original No. 5412021-22- Adjn(Commr)-ST dt. 08/03/2022 issued by the Respondent No.1 , and all subsequent and consequential actions, more particularly issuance of demand letter bearing
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