Patna High Court
The Peripheral ServiceversusThe Union of India
- Decided
- Disposal
- DISPOSED
Holding
The writ petition is dismissed, and the petitioner is directed to pursue the alternative remedy under the Finance Act, 1994.
Summary
The proprietor of Peripheral Service filed a writ petition in the Patna High Court challenging Adjudication Order No. 63/ST/AC/2024 dated 03.04.2025, which imposed service tax, interest, and multiple penalties under the Finance Act, 1994 for the period April 2016 to June 2017. The petitioner sought quashing of the order and a stay of its operation, contending that the order was erroneous. The Court examined whether a writ jurisdiction is appropriate for challenging the adjudication order and whether the petitioner must first avail the alternative remedy provided under the Finance Act. The Court held that the writ petition could not be entertained in this form and directed the petitioner to pursue the statutory remedy available under the Finance Act. Consequently, the petition was disposed of without granting any relief, with liberty granted to approach the appropriate alternative remedy.
Issues considered
- Whether the High Court can quash an adjudication order passed under Section 73 of the Finance Act, 1994 through a writ petition.
- Whether the petitioner is required to avail the alternative remedy prescribed under the Finance Act before approaching the court.
Legislation cited
- Finance Act, 1994 — s. 73, 75, 77(1)(c)(ii), 77(2), 78
Subjects
- Service Tax
- Finance Act 1994
- Adjudication Order
- Writ Petition
- Penalty
- CGST
- Jurisdiction
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.11102 of 2025
======================================================
The Peripheral Service through its Proprietor- Shri Rajesh Kumar, Aged about
56 years, Male, S/o Late Jagdeo Prasad Singh, Address Office No.03, M.F.,
Om Complex, S.P. Verma Road, Post Office-GPO, Police Station- Kotawali,
Patna-800001.
... ... Petitioner/s
Versus
1. The Union of India through the Commissioner of Central Goods and Service
Tax and Central Excise Patna-I, 3rd Floor, GST Bhawan, Central Revenue
Building, Birchand Patel Path, Police Station- Kotwali, Post-Office- GPO,
Patna -800001.
2. The Assistant Commissioner, Central Goods and Service Tax and Central
Excise Hqrs. Patna-I, 3rd Floor, GST Bhawan, Central Revenue Building,
Birchand Patel Path, Police station- Kotwali, Post-Office- GPO, Patna
-800001
3. The Assistant Commissioner, Patna Central Division, Central Goods and
Service Tax and Central Excise, Chandpura House, Near Dadi ji Mandir,
Bank Road, West Gandhi Maidan, Police Station- Gandhi Maidan, Post-
office- GPO, Patna -800001.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Radha Raman, Advocate
For the Respondent/s : Mr. Sriram Krishna (Sr. Standing Counsel, CGST)
Mr. Prabhat Kumar Singh, Advocate
Ms. Ruchi Mandal, Jr. Counsel, CGST
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE ARUN KUMAR JHA
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 22-04-2026 The present writ petition has been filed seeking the
following reliefs:-
“1. That instant Writ-petition is being
Patna High Court CWJC No.11102 of 2025(2) dt.22-04-2026
2/3
filed for issuance of an appropriate Writ/ Order/
Orders/Direction for Quashing Adjudication
Order No. 63/ST/AC/2024, dated 03.04.2025,
under DIN-2025460XV00000DFY3 (Annexure-
P:2) passed by the respondent no.2, under
Section 73 of the Finance Act, 1994, wherein
demand of Service Tax Rs.1,88,452.00 confirmed
under Section 73, along with interest under
Section 75 and imposed penalty amounting to Rs.
1,88,452.00 under Section 78, Penalty
Rs.30,000.00 under Section 77(2) and penalty
Rs.10,000.00 under Section 77(1)(c)(ii) of the
Finance Act, 1994, in relating to tax period April,
2016 to June, 2017 which has been passed in
context of Demand-Cum-Show Cause Notice
issued under C.No.II(39)784/CGST-
PCD/SCN/TPS/2021-22/3004, dated 23.10.2021,
DIN 20211260XU0000337EBI (hereinafter
referred as DSCN) (Annexure-P:1), issued by
respondent no.3.
And
The petitioner may be granted stay of
operation of order impugned till disposal of
instant petition.
And/or
The petitioner may be granted any
other relief/reliefs for which he may be deemed
entitled to by this Hon’ble Court.”
2. At the outset, the learned counsel for the petitioner
seeks liberty on behalf of the petitioner to avail appropriate
alternative remedy as is provided for under the provisions of the
Finance Act, 1994. Liberty, so sought, is granted.
Patna High Court CWJC No.11102 of 2025(2) dt.22-04-2026
3/3
3. Accordingly, the present writ petition stands
disposed of.
(Mohit Kumar Shah, J)
(Arun Kumar Jha, J)
GAURAV S./-
U
Checking your session…