2023 (3) TMI 643 - HC - Service Tax

Need of pre-consultation before issuance of Show Cause Notice - Liability of service tax imposed on the petitioner - ocean freight charges - petitioner states that the goods imported were CIF imports and, therefore, there is no question of any service tax being paid on any service relating to ocean freight since the petitioner has not received any such service and the service, if any received, has been received by the exporter from the overseas.

HELD THAT:- The Department shall give full opportunity to the petitioner to respond to the observations in the special audit report and if the explanation is found, not satisfactory, then issue a fresh Show Cause Notice, also correcting the errors that have crept in the Show Cause Notice dated 21.04.2022. Mr. Tarun Gulati, learned Senior Counsel appearing for the petitioner submits that although the audit report itself is liable to be set aside but the suggestion from the respondent would meet the ends of justice.

The Department is at liberty to issue a fresh notice for pre-consultation. It is also directed that the Show Cause Notice, if any, would be issued only after the explanation of the petitioners in respect of observations made in the special audit report have been duly considered and after reflecting on the figures.

The petition is disposed off.