M/S. East Coast Constructions And Industries Limited vs. Union Of INDIA
Held
The Court did not decide the merits of the Petitioner's challenge to the penalty levied under Section 78 of the Finance Act, 1994. Instead, the Petitioner sought to withdraw the Writ Petition on the grounds that they had applied under the 'Sabka Vishwas Legacy' Scheme and that their application was pending consideration before the respondents. In light of this submission, the Court dismissed the Writ Petition as withdrawn. The Court granted liberty to the Petitioner to revive the Writ Petition if they did not receive any relief under the aforementioned scheme. The Court also stated that as a sequel, any pending miscellaneous petitions in this Writ Petition would stand closed. No order as to costs was made.
Facts
M/s. East Coast Constructions and Industries Limited (Petitioner) filed a Writ Petition before the High Court for the State of Telangana challenging an Order in Original No. 05/2018-19 Adjin-AC, dated 28-09-2018, passed by the Assistant Commissioner of Central Tax (Respondent No. 2). The challenge was specifically to the penalty levied under Section 78 of the Finance Act, 1994, which the Petitioner contended was illegal, arbitrary, violative of natural justice, and contravened the provisions of the Finance Act, 1994. The Petitioner also sought a direction to refund the balance amount after adjusting the tax and interest payable. The Petitioner later sought to withdraw the Writ Petition because they had applied under the 'Sabka Vishwas Legacy' Scheme, and their application was pending.
Key Issues
1. Whether the penalty levied under Section 78 of the Finance Act, 1994, by the Assistant Commissioner of Central Tax in Order in Original No. 05/2018-19 Adjin-AC is illegal, arbitrary, and violative of the principles of natural justice and the provisions of the Finance Act, 1994? Petitioner's Contention: The Petitioner argued that the penalty imposed was illegal, arbitrary, and violated principles of natural justice and the Finance Act, 1994. They sought to set aside this penalty and recover any excess amount paid. Respondents' Contention: The judgment does not record any specific arguments made by the Respondents regarding the legality of the penalty. However, the Petitioner's withdrawal was based on applying for the 'Sabka Vishwas Legacy' Scheme, indicating a potential resolution outside of the court's adjudication on the merits of the penalty.
Sections Cited
Section 78
AI-generated summary — verify with the full judgment below
HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTIETH DAY OF MAY TWO THOUSAND AND TWENTY PRESENT Between: AND
M/s. East Coast Constructions and lndustries Limited, Having its registered office at: 4, Moores Road, Chennai Tamilnadu- 600006 Rep by its Director, Ivlr' S'A'lt/uhamed Mohideen ...pETrroNER 3 Union of lndia, Rep by Finance Secretary, The Ministry of Corporate Affairs, 'A' wing, Shastri Bhawan, Rajendra Prasad Road, New Delhi - 110 001. The Assistant Commissioner of Central Tax, Central Exercise and Service Tax, Kukatpally, GST Range, 3rd Floor, Lords Court, Plot No.B0,B1, Usha Mullapudi Road, A.S. Raju Nagar. Kukatpally, Hyderab_ad-50007 2. Superintendent, Kukatpally, GST Range, 3'' Floor, Lords Court, Plot No.B0, B'l , Usha l\,4ullapudi Road, A.S.Raju Nagar, Kukatpally, Hyderabad-500072. RESPONDENTS lA NO: 1 OF 2019 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings in furtherance of Order in Original No.05/2018-19 Adjin- AC including recovery of any further amount towards tax, p
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