TMI Blog2010 (1) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... of one week from the date of receipt of a copy of this order, the respondent shall pass final orders taking note of the above legal position within a period or four weeks thereafter. - W.P. No. 19089 of 2009 - - - Dated:- 18-1-2010 - JYOTHIMANI P. , J. ORDER:- P. JYOTHIMANI J. Admit. By consent of the learned counsel on either side, the writ petition itself is taken up for final disposal. The writ petition is directed against the show-cause notice issued by the respondent dated August 14, 2009, by which the respondent has directed the petitioner to show cause as to why an amount of Rs. 38,05,867 should not be demanded from them under proviso to section 73(1) of the Finance Act, 1994 towards service tax apart from the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in Indian National Shipowners Association v. Union of India reported in [2009] 21 VST 60; [2009] 13 STR 235 has held that the respondents have no authority to levy the service tax and the relevant portion of the order is as follows (at page 73 of VST): 26. It appears that a similar provision in the rules was made applicable by the Government in relation to the clearing agents by making customers of the clearing agent liable for levy of service tax. That question has been decided by the Supreme Court by its judgment in the case of Laghu Udyog Bharati [2005] 1 VST 24; [1999] 115 STC 616; [1999] 112 ELT 365 and the Supreme Court has clearly laid down that the imposition of the service tax is on the persons rendering the services and b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nactment of section 66A, there was no such provision in the Act and therefore, the respondents had no authority to levy service tax on the members of the petitioners-association. The same was of the view taken by the Delhi High Court in United Ltd. v. Commissioner of Service Tax, Delhi reported in [2009] 15 STR 385 (Delhi). It is also not in dispute that as against the judgment of the Division Bench of the Bombay High Court, a special leave petition was filed before the Supreme Court and the same stood dismissed by the judgment of the Division Bench in Union of India v. Indian National Ship Owners reported in 2009-TIOL-129-SC-ST. In such circumstances, according to the learned counsel for the petitioner, the impugned show-cause notic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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