Pramod Kumar Behera vs. Union Of INDIA

Held

The Petitioner sought permission to withdraw the Writ Petition with liberty to avail appropriate remedies before the competent forum. The Court granted this permission. Consequently, the Writ Petition was disposed of as withdrawn. The Court explicitly stated that it had not expressed any opinion on the merits of the case, leaving all questions of fact and law open to be agitated before the appropriate forum. No specific findings were made on the legality or arbitrariness of the demand or the applicability of the exemption notification. The operative direction was to allow the withdrawal and permit the Petitioner to approach another forum.

Facts

The Petitioner, M/s. Pramod Kumar Behera, an 'A' Class Contractor, filed a Writ Petition challenging an order dated 25.03.2023. This order demanded service tax and penalty from the Petitioner. The Petitioner contended that their firm was exempt from paying service tax on government contracts, citing Service Tax Mega Exemption Notification No. 25/2012. The Petitioner argued that the demand was illegal, arbitrary, void, and unsustainable in law due to this exemption. The Opposite Parties were the Union of India and others. The procedural history indicates the Petitioner approached the High Court directly via a Writ Petition.

Key Issues

1. Whether the demand of service tax and penalty against the Petitioner is illegal and arbitrary, contrary to the exemption provided under Service Tax Mega Exemption Notification No. 25/2012, thereby rendering the impugned order void and unsustainable in law? The Petitioner argued that the impugned order demanding service tax and penalty is illegal and arbitrary because their firm is completely exempted from paying service tax on government contracts as per Service Tax Mega Exemption Notification No. 25/2012. They contended that the demand is void and cannot be sustained in law in light of this exemption. The Revenue or State did not record any arguments in the judgment.