2025:JHHC:25844-DB IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P. (T) No. 2762 of 2023 M/s. Swastik Enterprise, partnership firm, having its Office at Sahijana Road, P.O. Garhwa, P.S. Garhwa, District Garhwa-822114, through its Partner Roushan Singh, Aged about 35 years, Son of Sri Naresh Prasad Singh, Resident of Sahijana Road, P.O. Garhwa, P.S. Garhwa, District Garhwa-822114. ... Petitioner Versus Principal Commissioner, Central Goods and Services Tax & Central Excise, having his Office at Central Revenue Building, 5-A, Mahatma Gandhi Road, P.O. Doranda, P.S. Chutia, District Ranchi 834001. ... Respondent --------- CORAM: HON’BLE THE CHIEF JUSTICE HON’BLE MR. JUSTICE RAJESH SHANKAR --------- For the Petitioner: Mr. Abhijeet Kumar Singh, Advocate Ms. Archana Kumari Singh, Advocate For the Respondent: Mr. P.A.S. Pati, Sr. S.C. (CGST) Mr. Anurag Vijay Jr. S.C. (CGST) Mr. Shivam Singh, Jr. S.C. (CGST) --------- 08/Dated: 28.08.2025 Tarlok Singh Chauhan, C.J.(Oral) 1. The instant writ petition has been filed for grant of the following substantial reliefs:- (a) For quashing and setting aside the ex-parte Order-in-Original No. 08/ST/Pr.Commr./2023 dated 27/29.03.2023 (Annexure-3), passed by the Respondent i.e. Principal Commissioner, Central Goods & Service Tax, Ranchi, as the same has been passed in violation of principles of natural justice and the same is without jurisdiction in view of the fact that the said Adjudicating Authority (Respondent), without taking into account/consideration the vital facts of the matter that no Show Cause Notice dated 29.09.2020 as well as none of the 2025:JHHC:25844-DB subsequent notices issued for personal hearing were served upon the Petitioner to its address and further, the above impugned order is also without jurisdiction in view of the fact that no service tax is payable by the petitioner on the work executed by it for the F.Y. 2014-15 and 2015-16, for Strengthening of Road for the Road Construction Department of State of Jharkhand, as the same is exempted under Sl. No. 13 of Notification No. 25/2012-ST dated 20.06.2012 (Annexure-4) and also in view of the fact that the Petitioner is paying Value Added Tax (VAT) over the entire turnover during the period in question and Principal Employer had also made TDS from the payment made to the Petitioner for the work executed, and it is a settled principle of law that VAT and Service Tax are mutually exclusive in nature. (b) For a declaration that the Petitioner is not liable to pay any service tax during the F.Y. 2014-15 and 2015-16, nor liable to take registration under the provisions of Finance Act, 1994 or to file any return under the said Act, in view of the fact that during the period in question, the Petitioner had paid Value Added Tax (VAT) over the entire turnover and the Principal Employer had also made TDS from the payment made to the Petitioner for the work executed, and it is a settled principle of law that VAT and Service Tax are mutually exclusive in nature and also in view of the fact that the works executed by the Petitioner was fully exempted from the payment of service tax as per Mega Exemption Notification No. 25/2012-ST dated 20.06.2012 (Annexure-4). 2025:JHHC:25844-DB 2. When the matter came up for consideration before this Court on 5th of August 2025, we directed the respondents to produce the relevant record. Today, the respondents have produced the record, which is in the nature of dispatch register and we find from the same that that the petitioner, in fact, was not served with any show-cause notice dated 29th of September 2020 so as to enable it to file its reply and supporting documents. 3. Therefore, the impugned order dated 27.03.2023 passed by the Principal Commissioner, CGST and Central Excise, Ranchi, imposing a huge penalty of Rs.4,42,11,398/- cannot be sustained as being in gross violation of the basic principles of natural justice and fair play. 4. Accordingly, we find merit in this application and the same is accordingly allowed. The order dated 27.03.2023 is quashed and set aside. Any consequential order/s passed thereafter is/are also quashed. The matter is remitted back to the Adjudicating Authority who shall decide the case afresh. The parties shall appear before the Adjudicating Authority on 11th September 2025. The Adjudicating Authority shall decide the case as expeditiously as possible and in any event, by 31st of December 2025. (Tarlok Singh Chauhan, C.J.) (Rajesh Shankar, J.) N.A.F.R. Manoj/Pramanik/Cp.2