Order Date – 13 April 2023

Parties: M/s Bhupinder Singh and Associates Vs Commissioner Central GST and another

Facts – 

• The Petitioner, M/s Bhupinder Singh and Associates is a works contractor under civil contract, mainly of Punjab Police Housing Board, Improvement Trust, Guru Nanak Devi University and Dainik Prarthana Sabha. Since the activity undertaken by the petitioner was exempted from payment of service tax the petitioner was not registered with the department. However, in the year 2014, the petitioner got itself registered with the Service Tax Department.
• The petitioner was issued show cause notice dated 23.10.2013 for the period 2008-09 to 2011-12, proposing the service tax on work executed by it. Later, several show cause notices were issued to the petitioner proposing the same demand and final order were passed on 15.12.2020 confirming the demand. 
• The petitioner contended that the order has been passed after the expiry of five years from the date of notice. The statutory authority has to decide the show cause notice within the time prescribed and if, it is not done so in time, the show cause notice is liable to be set aside on the issue of limitation alone.

Issue –

• Whether the show cause notice is liable to set aside or not?

Order –

• The Divisional Bench of Hon’ble High court held that issue in the present case is squarely covered in favour of the petitioner keeping in view of the decision rendered in GPI Textiles Ltd.’s case. Since, no interim stay has been granted by Hon’ble the Supreme Court in the above mentioned appeals, the present petition is allowed, and the impugned order dated 15.12.2020 is set aside.