M/S. Universal Security Service vs Central Board Of Indirect Taxes & .... ...
2025 Latest Caselaw 1535 Ori

Citation : 2025 Latest Caselaw 1535 Ori
Judgement Date : 22 July, 2025

Orissa High Court

M/S. Universal Security Service vs Central Board Of Indirect Taxes & .... ... on 22 July, 2025

              IN THE HIGH COURT OF ORISSA AT CUTTACK
                                W.P.(C) No.16873 of 2025

            M/s. Universal Security Service           ....             Petitioner
                                            Mr. G.K. Roy Choudhury, Advocate

                                         -Versus-
            Central Board of Indirect Taxes &      ....        Opposite Parties
            Customs, New Delhi and others
                                        Mr. A. Kedia, Junior Standing Counsel

                               CORAM:
                     HON'BLE THE CHIEF JUSTICE
                                AND
             HON'BLE MR. JUSTICE MANASH RANJAN PATHAK


                                          ORDER

Order No. 22.07.2025

01. W.P.(C) No.16873 of 2025 and I.A. No.10147 of 2025

1. Mr. A. Kedia, learned Junior Standing Counsel, GST,

Central Excise & Customs enters appearance on behalf of opposite

parties and files his appearance memo in Court today, which is

taken on record.

2. Mr. G.K. Roy Choudhury, learned advocate appears on

behalf of petitioner and submits, assuming though not admitting

that there could be allegation of suppression by his client, the

determination of amount of service tax due was not made

anywhere near within one year from date of the notice. He submits,

the facts are glaring for his to demonstrate that impossibility to

determine within the time cannot be the case of revenue. He relies

on use of word 'shall' in subsection (4B) under section 73 in

Finance Act, 1994 to make his point.

3. He relies on judgment dated 4th April, 2024 of a Division

Bench in the High Court of Patna (Civil Writ Jurisdiction Case

no.18398 of 2023) M/s. Kanak Automobiles Pvt. Ltd. v. Union of

India and others (tiol print). We reproduce below paragraph-10

from the judgment.

"10. Here, we agree that it is not an absolute mandate that the proceedings should be completed within one year from the notice; 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."

4. Mr. A. Kedia, learned Junior Standing Counsel for the

Revenue produces the copy of the order of the Apex Court dated

02.05.2025 passed in SLP (C) No.5392 of 2025 and submits that in

view of the observation of the Apex Court at paragraph-9 of the

said order, the hearing of this case may be deferred.

5. Let the matter be tagged with W.P.(C) No.18713 of 2024

and be listed on the same day when the said writ petition is

directed to be listed. Till then, no coercive action shall be taken

against the petitioner.

Urgent certified copy of this order be granted as per rules.

(Harish Tandon) Chief Justice

(M.R. Pathak) Judge S.K. Parida/ A. Nanda