2014 (9) TMI 1121 - HC - Service Tax

Vires of Rule 5A of the Service Tax Rules, 1994 - the notice of the petitioner has been drawn to Rule 5A of the said Service Tax Rules, 1994 by quoting the provisions of Rule 5A(2) thereof - Held that - When the Rule does not survive, there is no question of any notice issued thereunder having any validity - the present petition would also have to be allowed inasmuch as the notice, which is impugned before us, has been issued under Rule 5A(2) - petition allowed - decided in favor of petitioner.

Summary

Issues: Challenge to notice for service tax audit under Rule 5A(2) of Service Tax Rules, 1994.

In this judgment, the High Court of Delhi considered a writ petition challenging a notice dated 16-2-2011 issued by the Superintendent (Audit), Group-B-VI from the office of the Commissioner of Service Tax, Delhi. The notice pertained to an intimation for conducting a service tax audit, with reference to an earlier letter dated 28-12-2010. The petitioner's concern was being audited under Rule 5A of the Service Tax Rules, 1994, as highlighted by the petitioner's counsel. The counsel also brought to light a previous decision of a Division Bench in Travelite (India) v. Union of India, where Rule 5A(2) was deemed ultra vires the Finance Act, 1994, and void. Given the striking down of Rule 5A(2) by the Division Bench, the High Court concluded that the impugned notice under the same rule was invalid, leading to the quashing of the notice and subsequent summons issued on different dates in 2012. The writ petition was allowed, and no costs were awarded in this matter.