2011 (1) TMI 1449 - HC - Service Tax

Summary

Issues involved:
The issues involved in the judgment are the legality of the Show Cause Notice issued by Respondent No. 2, the demand of &8377; 24,61,850/- under Section 72 of the Finance Act, 1994, the permissibility of issuing a Show Cause Notice after best judgment assessment under Section 73 of the Finance Act, 1994, and any other appropriate relief deemed just and proper.

Judgment Details:

Issue (a):
The petitioner sought a writ to quash the Show Cause Notice issued by Respondent No. 2 as illegal. During the hearing, the respondents agreed that the adjudicating authority would address the petitioner's objection regarding the issuance of the show cause notice. The court directed the adjudicating authority to decide on the jurisdictional aspect after hearing the petitioner. The order was to be a speaking one, and the authority was given six weeks to make a decision. The writ petition was disposed of with no order as to costs.

Issue (b):
The petitioner requested a writ to quash the demand of &8377; 24,61,850/- created by the respondents through best judgment assessment under Section 72 of the Finance Act, 1994. The court's direction to the adjudicating authority to address the jurisdictional aspect also applies to this issue. The authority was instructed to consider the petitioner's stance and make a decision within six weeks. The writ petition was disposed of without any costs being awarded.

Issue (c):
The petitioner sought a writ to declare that no Show Cause Notice can be issued under Section 73 of the Finance Act, 1994, once a best judgment assessment has been made. The court's directive to the adjudicating authority to examine the jurisdictional aspect covers this issue as well. The authority was given six weeks to decide after hearing the petitioner. The writ petition was disposed of, and no costs were awarded.

Conclusion:
The High Court directed the adjudicating authority to address the jurisdictional aspect raised by the petitioner regarding the Show Cause Notice and the demand created through best judgment assessment. The authority was given six weeks to make a decision after hearing the petitioner, and the writ petition was disposed of without any costs being imposed.