M/S.M.S. Drills vs Chief Commissioner
2025 Latest Caselaw 5896 Ori

Orissa High Court

M/S.M.S. Drills vs Chief Commissioner on 13 June, 2025

Bench: A.K. Mohapatra, Murahari Sri Raman

                  IN THE HIGH COURT OF ORISSA AT CUTTACK
                            W.P.(C) No.14967 of 2025

              M/s.M.S. Drills                  ....             Petitioner
                                   Mr.Ashis Kumar Samal, Advocate
                                   -versus-
              Chief Commissioner, CGST       .... Opposite Parties
              CE, Odisha and another
                                  Mr.A. Kedia, Jr. Standing Counsel

                                 CORAM:
                   HON'BLE MR. JUSTICE A.K. MOHAPATRA
                                   AND
                 HON'BLE MR. JUSTICE MURAHARI SRI RAMAN
                                    ORDER

Order No. 13.06.2025 W.P.(C) No.14967 of 2025 and I.A. No.9365 of 2025

01. This matter is taken up through Hybrid mode.

2. Mr.Samal, 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 him to demonstrate that impossibility to determine within the time cannot be the case of revenue. He relies on use of word 'shall' in sub-section (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 paragraph10 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."

3. Mr. Kedia, learned Junior Standing Counsel for the Revenue produces the copy of the order of the Apex Court dated 2.5.2025 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.

4. List this matter on 7.7.2025 and tag this matter to W.P.(C) No.18713 of 2025. Till then, no coercive action shall be taken against the petitioner.

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

(A.K. Mohapatra) Vacation Judge

(M.S. Raman) Vacation Judge Basu

Designation: ASST. REGISTRAR-CUM-SR. SECRETARY

Location: HIGH COURT OF ORISSA : CUTTACK Date: 13-Jun-2025 19:05:39