Facts of the Case

Ramchandra Reddy Kota challenged an Order-in-Original dated 31.03.2023 (received 09.05.2023) passed by the Additional Commissioner, Central Tax, Central Excise and Service Tax, Secunderabad Commissionerate, confirming a demand of service tax amounting to Rs. 1,02,74,734 under Section 73(2) of the Finance Act, 1994, for the assessment period 2016-17 (a pre-GST period), along with interest and penalty.

Issues Involved

  1. Whether the impugned order, said to have travelled beyond the scope of the show-cause notice, involved a violation of principles of natural justice or lack of jurisdiction warranting direct writ interference, or whether the petitioner should be relegated to the statutory appeal.

Petitioner's Arguments

  • The show-cause notice preceding the order was based on the petitioner's income tax return, but the impugned order went beyond the scope of that notice, making it illegal.

Respondent's Arguments

  • No specific defence is recorded beyond the Court's own examination of whether the order suffered from jurisdictional infirmity or a natural-justice violation.

Court Order / Findings

  • The Court held that this was not a case of absolute violation of principles of natural justice, nor was the order ex facie without or beyond jurisdiction — such matters could be agitated and decided in appeal.
  • The petitioner was relegated to the statutory appellate forum under Section 85 of the Finance Act, 1994, with a direction that if the appeal is filed within 30 days, the appellate authority shall consider it on merits after affording a hearing.
  • The writ petition was disposed of, without costs.

Important Clarification

This case concerns a Service Tax demand for a period prior to the introduction of GST (assessment year 2016-17), under the erstwhile Finance Act, 1994 — it is not a GST matter, even though the tax authority (GST Bhawan, Secunderabad Commissionerate) is the same field formation that now also administers GST. No GST law question was raised or decided.

Sections Involved

  • Finance Act, 1994 — Section 73(2) (demand of service tax) and Section 85 (appeals)

Decision – In Favour of

Decided against the petitioner on the threshold — the writ petition was disposed of with a direction to pursue the statutory appeal under Section 85 of the Finance Act, 1994, within 30 days.

Case Details

  • Court: High Court for the State of Telangana at Hyderabad
  • Case No.: WP No. 16290 of 2023
  • Coram: Chief Justice Ujjal Bhuyan and Justice N. Tukaramji
  • Date of Order: 27 June 2023

Link to Download the Order

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