Karnataka HC Revives Service Tax Proceedings

The Karnataka High Court set aside an ex parte service tax demand order and remanded the matter for fresh adjudication. 

The petitioner challenged the Order-in-Original dated 13 December 2022 passed under the Finance Act, 1994, confirming service tax demand along with interest and penalty. 

The Court held that where the assessee asserts non-service of notice and seeks to raise substantive legal defences against the proposed demand, the proceedings should be restored and reconsidered after providing an effective opportunity of hearing.