Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2019 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 840 - HC - Service TaxInquiry proceedings / summons under service tax - Business Auxiliary Services - the present Writ Petition challenging summons dated 28.09.2010 calling for the attendance of the petitioner along with TDS statements for the previous five years, Credit/Debit notes received from finance company/TVS Motor Company and free service details - HELD THAT:- This Writ Petition is premature. What has been challenged is a summons issued in terms of the provisions of Section 14 of the Central Excise Act, 1944, which entitles the Central Excise Officer, duly empowered by the Central Government in that behalf, to summon persons to give evidence and produce documents in an on-going enquiry. In the present case, enquiry is admittedly on-going in regard to the taxability of the commission received by the petitioner. The apprehension of the petitioner appears to be that the respondent has pre-determined the issue and is hence merely seeking to collate requisite documents to enable the issuance of a show cause notice without application of mind as to whether such show cause notice is actually called for or not. In the present case, the question as to whether the petitioner is actually rendering services to the finance companies is one of fact. One cannot deny that there is a symbiotic relationship between the petitioner and the financial institutions and one does benefit from the efforts of the other in terms of furthering their own respective business interests - The petitioner by the efforts of the finance companies, gets the benefit of increased business, quite apart from the the finance company benefiting by the marketing efforts of the petitioner. However, whether such an arrangement would fall within the realm of 'taxable services' is yet unclear and will emanate only upon further detailed enquiry of facts. It would be appropriate to direct the petitioner to cooperate with the on-going enquiry, appear before the respondent for completion of proceedings and allow the same to come to a logical conclusion. While dismissing the Writ Petition and fixing a date when the petitioner will appear before the respondent for enquiry, it is made clear that the respondent shall not approach this issue with a pre-determined mind - petition dismissed.
|