2015 (5) TMI 1131 - HC - Service Tax

Validity of SCN - deposition of amount - Held that - all the four notices dated 9th May, 2012 which are at Annexure2 series are quashed, as they were based upon the order which is now quashed and set aside - petition allowed.

Summary

Issues involved:
Challenge to notices dated 9th May, 2012 based on previous orders and challenges to those orders.

Analysis:

The petitioner sought to quash four notices dated 9th May, 2012 issued to various parties, claiming they were based on a show cause notice from July 2011. The show cause notice was adjudicated by the Additional Commissioner, leading to subsequent challenges and orders. The Commissioner (Appeals) initially demanded a significant amount, later reduced by CESTAT to &8377; 8.36 lakhs. The matter was then remanded for fresh decision. A subsequent order by the Additional Commissioner reduced the liability to &8377; 16,24,671, which the petitioner had already paid. The respondents argued that the order from October 2014 was challenged, and thus, the May 2012 notices should not be quashed.

The High Court considered the sequence of events, noting that the original show cause notice demanded &8377; 49,90,780. The subsequent orders by the Commissioner (Appeals) and CESTAT led to a reduced liability of &8377; 16,24,671. The court found that the May 2012 notices were based on now-quashed orders and, therefore, unsustainable. Despite challenges to the October 2014 order, the court held that the purpose of the May 2012 notices was no longer valid. Consequently, the court allowed the writ petition, quashing the May 2012 notices and allowing the respondents to issue a fresh notice for tax recovery.