WP/46542/2022 of Neha Diagnostic Services Vs Union of India and another on 30 December 2022

IN THE HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction)

FRIDAY,THE THIRTIETH DAY OF DECEMBERTWO THOUSAND AND TWENTY TWO

PRESENT

THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYANANI)

THE HONOURABLE SRI JUSTICE C.V. BHASKAR REDDY

WRIT PETITION NO: 46542 OF 2022

Between:

Neha Diagnostic Services, 3-8/1, Ground Floor, Beside Kotak Mahindra Bank,Pillar No. 41557, Chaitanyapuri, Dilsuknagar, Hyderabad- 500036, Rep. by itsPartner, Dr.Reddappagari Ravindra Reddy, S/o Late Reddappagari VenkataRami Reddy, Aged about 53 [years.]

...PETITIONER

AND

1.Union of lndia, rep by its Secretary, Government of lndia lvlinistry of Finance,3rd Floor Jeevan Deep Building, Sansad Marg New Delhi.l 1 0 001 .3rd Floor Jeevan Deep Building, Sansad Marg New Delhi.l 1 0 001 .

2The Deputy Commissioner, Central Tax Saroornagar CGST Division, RangaReddyReddy

...RESPONDENTS

Petition under Anicle 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue a Writ or Direction or an Order more particularly one in thenature of WRIT OF MANDAMUS to declare the proceedings in C.No. lvl16l745l2020-Adjn/130512022 dated 15-11-2022 (Order in Original No.25412122-Adjn(DC)-SI) issued by the 2nd respondent whereby confirming the demand ofRs.13,89,344l- imposing penalty of Rs.13,89,344l- and Rs.10,000/- though thepetitioner is exempted from the Service Tax and without examining the certaindocuments as being illegal, arbitrary, unconstitutional, without following dueprocess of law, contrary to the provisions of Central Goods and Services Act2017 and violative of Article 12, 14,21 of the constitution of lndia andconsequently set-aside the impugned [proceedings ]dated 15-11-2O22.

lA NO: 1 OF 2022

Petition under Section 151 CPC praying that in the circumstances statedin the affidavit filed in support of the petition, the High Court may be pleased tosuspend the proceedings in C.No.lV/16/7451 2020- Adjnl130512022 dated 15-1 1-2022 (Order in Original No 25112022-Adjn (DC)-ST) issued by the 2ndrespondent , pendiqg disposal of the main writ petition.

Counsel for the Petitioner: SMT. S MADHAVI .

Counsel for the Respondent No.1: SRl. B. MUKHERJEE FOR SRI.GADIPRAVEEN KUMAR (Dy. SOLICITOR GENERAL OF INDIA)

Counsel for the Respondent No.2:MS. K. MAMATA CHOUDARY, FOR SRl. B.NARASIMHA SARMA

The Court made the following: ORDER

THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN

AND

THE HON'BLE SRI JUSTICE C.V,BHASKAR REDDY

WRIT PETITION No.46542 of 2022

ORDER: (Per the Hon'ble the Chief Justice Ujjal Bllugan)Heard Ms. S.Madhavi, learned counsel for the petitionerand Mr. B.Mukherjee, learned counsel representing Mr. GadiPraveen Kumar, learned Deputy Solicitor General of India forrespondent No. 1. We have also heard Ms. K.MamataChoudary, learned counsel representing Mr. B.NarasimhaSarma, learned Standing Counsel for respondent No.2.

2. By filing this petition under Article 226 of theConstitution of India, petitioner has assailed legality andvalidity of the order-in-original dated 15.17.2022 passed bythe 2.a respondent confirming demand of Rs. 13,89,344.00under Section 73(21 of the Finance Act, 1994 besides levy ofinterest and equivalent amount of penalty.

3. We find that petitioner had responded to the showcause notice and made written submissions. Therefore, it is I\

I

not a case of violation of prirrciples of natural [justice. ]Againstthe order-ir-r original, petitioner has the remedy of filingappeal undcr Section 85 ol the Finance Act, 1994 rcad withSection 35-F of the Central Excise Act, 1944.

4. That being the position, petitioner may fiie appealbefore the appellate authoritl' under the aforesaid provision.

5. Writ Petition is accordingly dismissed. However,there shall be no order as to costs.

6. Miscellaneous applications pending, if any, in thisWrit Petition shall stand closed.'RJ.,t+ifrBB3'BHXtsEbd8u [oFFrcER][[COPYII]]

I/TRUE [[COPYII]]

To,

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