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TMI Blog2025 (5) TMI 1455X X X X Extracts X X X X X X X X Extracts X X X X ..... nshuman Singh, Senior SC. ORAL JUDGMENT (PER: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD) Heard Mr. Aditya Prakash, learned counsel for the petitioner and Dr. K.N. Singh, learned ASG assisted by Mr. Anshuman Singh, learned Senior Standing Counsel for the Department of CGST and CX. 2. The present writ application has been filed seeking the following reliefs:- "a) To quash the impugned order-in-original vide No. 41/ST/Aayukt/2024 dated 24.06.2024 passed by Respondent No. 2 whereby and whereunder tax liabilities and penalties for the Financial Year 2016-17 to 2017-18 (upto June, 2017) were imposed against the Petitioner under the Finance Act, 1994, in a most arbitrary manner without following the statutory provisions as well as the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax dated 20.06.2012 as amended during the relevant period on the basis of third party data received from Income Tax Department for the Financial Year 2016-17 and hence the amount of Service Tax shown to be liable for recovery under Section 73(1) of the Act of 19945 and further petitioner was held liable for penalty under Section 78 of the Act of 1994. In addition to this the petitioner was also held liable for penalty under Section 77 (2) of the Act of 1994 for non-filing of ST-3 Returns for the period April 2016, 2016 and April, 2017 to June, 2017. The petitioner was also held liable for penalty under Section 77 (1) (c) (ii) of the Act of 1994 for their failure to produce document called for by the Department. Submission on behalf of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act of 1994 has fallen for consideration before this Court as well as before the several High Courts in India. The Courts have a consistent view that though the period prescribed in clause (b) of sub-section (4B) of the Act of 1994 is not an absolute period and the same cannot be taken as a period of limitation for passing of the order determining the liability, the Taxing Authority must show that why it could not become possible for him to determine the amount of service tax within a period of one year from the date of notice. It is submitted that in this case, the show cause notice was issued on 12.10.2021 but the first notice of hearing was issued after a period of two years. The counter affidavit nowhere explains the reason beh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing was issued on 12.10.2023. 10. In the case of M/s Kanak Automobiles (supra), the learned co-ordinate Bench of this Court has, though, held that the period prescribed in clause (b) of sub-section (4B) of Section 73 of the Finance Act cannot be taken as an absolute mandate that the proceeding should be completed within one year from the notice but at the same time, the learned co-ordinate Bench has recorded ".. but it requires the statutory authority to take all possible steps, so to do and conclude the proceedings within an year. No steps were taken in the entire one year period, which results in the frustration of the goal of expediency as required statutorily. We hence find that the proceedings cannot be continued." 11. The jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as fallen for consideration. In Sunder System Pvt. Ltd. (supra), the Hon'ble Delhi High Court has quoted in paragraph '9' of it's judgment one paragraph from National Building Construction Co. Ltd Vs. Union of India reported in 2019 (20) G.S.T.L. 515 (Del.). The relevant paragraph from the said judgment is being reproduced hereunder:- "9. A Coordinate Bench of this Court in the case of National Building Construction Co. Ltd. Vs. Union of India; 2019 (20) G.S.T.L. 515 (Del.) has held as under:- "20. ... Sub-section 4B to Section 73 of the Fin Act fixes the time or limitation period within which the Central Excise Officer has to adjudicate and decide the show cause notice. The time period fixed under Clause A or B is six months and one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book and kept in cold storage for years together, it is not on account of it not being possible for the authority to decide the case, but on grounds which are extraneous to the proceedings. In the opinion of this court, when the legislature in its wisdom has prescribed a particular time limit, the CBEC has no power or authority to extend such time limit for years on end merely to await a decision in another case. The adjudicatory authority is required to decide each case as it comes, unless restrained by an order of a higher forum." (Emphasis added)"" 14. Learned counsel for the petitioner has further submitted that in a recent judgment, the another learned coordinate Bench of this Court has in the case of Pawan Kumar Upmanyu (supra) s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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