9911796707
TMI Blog2025 (2) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... on the petitioner and quash the same. 2. The learned counsel for the petitioner submitted that it is for the first time the respondent has alluded to the existence of the CERA order in the counter that has been filed before this Court. It is submitted that Show Cause notice dated 31.07.2009 was replied by the petitioner in the year 2010 and the petitioner had also appeared for personal hearing before the adjudicating authority. However, no order was passed for the reasons best known to the respondent. 3. It is submitted that under similar circumstances a catena of decisions have been rendered by the Courts including this High Court wherein show cause notice proceedings have been quashed. The learned counsel for the petitioner drew the at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be entered into the call book. 5. It is submitted that the respondent had not complied with any of the requirements of the 2003 and 2017 circulars as referred supra, even after substantial lapse of time, after the case was allegedly transferred to the Call Book. Defending on the stand of the department, the learned counsel for the respondent submitted that the show cause notice has been issued in the back ground of CERA audit and the case was transferred to the Call Book on 30.12.2011, wherein a reference has been made to statement of facts given by the department pursuant to the CERA objection on 09.06.2009. 6. It is submitted that although the department was not inclined to issue show cause it was compelled to issue show cause in view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w cause notice is on account of adoption of different method of valuation of service provided by the petitioner for payment of service tax. The petitioner initially had received an advance of Rs. 2,50,00,000/- for carrying out certain construction activities for M/s.RAS Adyar Hotels Pvt.Ltd., during the month of May 2007. On the aforesaid amount the petitioner also paid service tax @ 12.36 % on the 33% of the advance amount, claiming abatement by treating the service as Commercial and Industrial Construction service as defined in Section 65 (25 b) of the Finance Act, 1994 liable to service tax in terms of Section 65 (105) ZZQ of the Finance Act, 1994 with effect from 01.06.2007. The amendment to Finance Act, 1994 vida Finance Act, 2007 came ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in his possession, reason to believe that the value of any taxable service assessable in any quarter has escaped assessment or has been under assessed, he may, in case falling under clause (a) at any time within five years and in cases falling under clause (b) at any time within six months from the date for filing the return, serve on the assessee a notice containing all or any of the requirements which may be included in a notice under subsection (2) of section 70 and may proceed to assess or reassess the value of taxable service, and the provisions of this Chapter shall so far as may be apply as if the notice were a notice issued under that sub-section. 10. It is not to be resorted by the department where particular there is a confl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d also recommended for closure and dropping of the proposal in the show cause notice. However, the issue is kept alive for over two decades and for the first time the department woke up only on 19.01.2021, pursuant to which the Principal Commissioner has accorded permission for adjudication. The adjudication of the show cause at this distant point of time is unnecessary and unwarranted, particularly in the light of the SoF of the department having difference of opinion with the CERA audit objection. Therefore, the impugned show cause notice ought not to have been issued and not proceeded and in any event ought to have been dropped. The fact remains that the petitioner has discharged service tax liability as a service provided in works contr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
