2023 (9) TMI 1662 - HC - GST

Levy of service tax interest and penalty - petitioners submits that he is not addressing arguments on merits with respect to Exhibit P6 orders-in original but only on the manner in which the orders have been passed - HELD THAT - Since there is some suspicion regarding the order dated 04.05.2023 that has been taken into consideration in the impugned orders it would be appropriate to set aside those orders. Therefore the matter remitted back to the second respondent to pass fresh orders in accordance with law keeping in view the procedural formalities and propriety. Petition allowed.

Summary

In the case before the Kerala High Court, the petitioners, the Kerala Dental Council and the Kerala State Pharmacy Council, challenged the Exhibit P6 orders-in-original dated 30.03.2023, which imposed service tax, interest, and penalty on them. These statutory bodies had previously been exempted from service tax under Article 243G/W of the Constitution of India and Notification No.25/2012. The petitioners did not contest the merits of the tax imposition but focused on procedural issues, particularly the inclusion of a review order dated 04.05.2023 in the impugned orders, which was allegedly issued after the original orders.

Counsel for the respondents, Sri. Sreelal N. Warrier, acknowledged a mistake regarding the dates mentioned in the orders, asserting that the review order could not logically be included in the original orders dated 30.03.2023. The court, presided over by Justice Dinesh Kumar Singh, found the procedural irregularities concerning the review order to be suspicious and decided to set aside the impugned orders. The matter was remitted back to the second respondent for reconsideration, with instructions to adhere to legal procedures and allow the petitioners a hearing before issuing new orders. The writ petitions were thus allowed, and the Exhibit P6 orders were annulled.