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TMI Blog2017 (3) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... Co-operative Societies Act, challenge the show cause notice issued by the Commissioner of Central Excise and Customs calling upon them to show cause why service tax shall not be imposed on them along with penalty and interest. 2. To understand the facts with a little more clarity, for easy reference, I am referring to the pleadings in WP(C) No. 17108/2016. Petitioner submits that they do not come under the purview of Service Tax Rules and is classified as "Primary Agricultural Credit Society" registered as per Section 2(oaa) of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as the KCS Act) and they do not belong to any of the organization mentioned in Section 65 (105)(zm) of the Finance Act, 1994 so as to attract serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Deposit and Credit Scheme, attracts the provisions of the Finance Act, 1994, to fasten the liability of service tax. It was further held that, if the said issue is ultimately decided against the Society, the respondents will be free to call upon the Society to produce the documents. It is argued that no such decision was taken in the matter and therefore the show cause notice presently issued is illegal and arbitrary and not in compliance with the directions issued and, therefore, the said notice is liable to be quashed. 4. Counter affidavit is filed on behalf of respondents 2 and 3 wherein it is stated that petitioner is engaged in activities falling under various definitions as per Section 65(105) of the Finance Act, 1994 for the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that the writ petition is premature and if the Society contests the stand taken by the respondents, Society has to file their objection which has to be considered in accordance with the procedure prescribed. This Court did not go into the merits of the controversy. However, it was observed that "if objections are filed as above, the respondent will hear the 1st petitioner and enquire as to whether the activity carried on by it, viz., Group Deposit and Credit Scheme, attracts the provisions of the Finance Act, 1994, to fasten the liability of service tax." It is on the basis of the above observation that petitioners contend that there has to be a finding on taxability before issuing show cause notice. 7. Perusal of the show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issuing a show cause notice. 8. Learned counsel for the petitioners further relied upon a judgment of this Court in WP(C) No. 25441/2015 decided on 19/8/2015, wherein, this Court only observed that the respondent authority shall determine whether it has jurisdiction and also whether the Society would fall within the ambit of service tax. As already mentioned above, such a consideration is very much available in the show cause notice itself and therefore there was justification on the part of the respondents to issue the show cause notice. 9. Learned standing counsel while supporting the stand taken in the matter further placed reliance upon the definition of "Financial Institution" as provided under Section 65(45) of the Finance Act. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nected cases have been dismissed as premature. The observation made by the Court that if the issue that the activity carried on by the society attracts provisions of Finance Act, 1994 to fasten the liability of service tax is decided against the Society, objection will be considered, is clearly complied with, while issuing the show cause notice. Even otherwise, when the respondents have in the show cause notice clearly indicated that they are proceeding after hearing the petitioner or their representative and after coming to a finding that the service rendered is taxable under the Service Tax Act, there is no reason for this Court to interfere in the matter at this stage of the proceedings. Hence, I do not think that any of the contentions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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