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2024 (4) TMI 12 - HC - Service TaxDemand of service tax on amounts collected as penalties under various contracts - Constitutional Validity of Section 66E(e) of the Finance Act, 1994 - violative of Articles 246 and 265 as well as Articles 14 and 19(1)(g) of the Constitution of India or not - HELD THAT:- It is clear and forthcoming that the contentions sought to be put forth by the petitioner have been interpreted and construed by the respondents by the circular dated 3.8.2022 which is subsequent to the show cause notice dated 20.6.2016. It is also relevant to note that prior to the issuance of the said circular dated 3.8.2022, the CESTAT has rendered its judgment in the case of South Eastern Coalfields Ltd. [2020 (12) TMI 912 - CESTAT NEW DELHI] - The respondents have subsequently issued a circular dated 28.2.2023, where under it has decided not to challenge the judgment rendered in the case of South Eastern Coalfields Ltd. Hence, the reliance placed by the petitioner on the said aspects requires consideration since the same goes to the foundational basis on which the show cause dated 20.6.2016 has been issued. It is further relevant to note that vide the said show cause notice dated 20.6.2016, the petitioner has been notified that it is liable to pay service tax. Further, it has been called upon to file its reply and place evidence in support of its defence. The petitioner was also required to indicate as to whether they wish to be heard in person before the case is adjudicated. The petitioner shall appear before the second respondent on 30.4.2024, on which date it shall place on record its defence along with all material it chooses to rely upon - Consequent to the appearance of the petitioner, the second respondent after affording an opportunity to the petitioner to put forth its defence shall consider the same in the light of the circulars dated 3.8.2022 and 28.2.2023 and after conducting further proceedings pass appropriate orders in accordance with law - Appeal disposed off.
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