Facts of the Case

M/s Rize Software Solutions Private Limited filed a writ petition before the Telangana High Court challenging the Order-in-Original dated 30.06.2021 passed by the Additional Commissioner of Central Tax, Hyderabad Commissionerate.

The impugned order demanded service tax amounting to ₹1,54,88,214 for taxable services allegedly provided during the financial years 2015-16 and 2016-17. The petitioner contended that the order was illegal, arbitrary, unconstitutional, violative of Articles 14 and 19(1)(g) of the Constitution of India, and sought its quashing. The petitioner also sought interim protection against coercive recovery proceedings.

Issues Involved 


  1. Whether the Order-in-Original dated 30.06.2021 demanding service tax should be quashed under Article 226 of the Constitution.
  2. Whether interim protection against coercive recovery proceedings should be granted pending disposal of the writ petition.
  3. Whether the writ petition deserved consideration on merits after filing before the High Court.

Petitioner's Arguments

The petitioner challenged the service tax demand primarily on the grounds that:

  • The impugned Order-in-Original was illegal and arbitrary.
  • The order violated the principles of rule of law.
  • The order was unconstitutional.
  • The order infringed Articles 14 and 19(1)(g) of the Constitution of India.
  • Coercive action pursuant to the order should be stayed pending adjudication of the writ petition.

Respondents' Arguments

The High Court order does not record the detailed submissions made on behalf of the respondents.

The order only records the appearance of counsel representing the Union of India and the Central Tax authorities.

Court Order / Findings

After hearing the matter, learned counsel appearing for the petitioner sought permission to withdraw the writ petition.

Accordingly, the Telangana High Court:

  • Permitted withdrawal of the writ petition.
  • Dismissed the writ petition as withdrawn.
  • Passed no order as to costs.
  • Directed that all pending miscellaneous applications stand closed.

The Court did not examine or decide the legality or validity of the service tax demand on merits.

Important Clarification

  • This judgment does not decide any issue relating to service tax liability.
  • No legal precedent has been laid down regarding service tax demand, adjudication, limitation, or recovery.
  • The writ petition came to an end solely because the petitioner voluntarily withdrew it.
  • Therefore, the order has procedural significance only and cannot be relied

Sections / Provisions Involved

  • Article 226 of the Constitution of India
  • Section 151 of the Code of Civil Procedure, 1908
  • Service Tax provisions relating to alleged non-payment of service tax for FY 2015-16 and FY 2016-17 (as challenged in the Order-in-Origina

Link to Download the Order-https://www.mytaxexpert.co.in/uploads/1784803382_1909.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.