2021 (2) TMI 1347 - HC - Service Tax

Maintainability of appeal - HELD THAT - The appellant has made out a prima facie case for entertaining this appeal. Accordingly, the Civil Miscellaneous Appeal is admitted to consider the following substantial questions of law 1. Whether the cryptic final order dated 03.03.2020 passed by the Tribunal without considering any of the pleas raised by the appellant including the preliminary objections taken out by them in their written arguments supported by judicial pronouncements apart from traversing beyond the scope of the show cause notice contrary to the pronouncements of the Hon'ble Apex Court is maintainable in law? 2. Whether the Tribunal was right in overlooking the communication received from the revenue authorities accepting the classification of their impugned activities under the taxable Information Technology Software Services and accordingly asking the appellant to pay the tax under the said entry after amending their registration certificate and also closing the dispute thereafter on the appellant remitting the tax as informed to them so as to confirm the order of the 1 st appellate authority sustaining the demand, without giving any set off to the amount already paid by them for the same period is proper and correct? 3. Whether the Tribunal was right in not considering the decision of the co-ordinate Benches of the Tribunal in similar matter holding the issue in favour of the appellant herein inspite of the said decision having been specifically brought to its notice? List the appeal on 03.06.2021.

Summary

Issues:
1. Entertaining the appeal based on a prima facie case.
2. Consideration of substantial questions of law regarding the Tribunal's final order.

Entertaining the Appeal:
The High Court, after hearing the appellant's counsel, acknowledged the prima facie case made by the appellant for entertaining the appeal. The Court admitted the Civil Miscellaneous Appeal to delve into substantial questions of law raised by the appellant. The questions included the maintainability of the Tribunal's final order dated 03.03.2020, which allegedly did not address the appellant's pleas and preliminary objections supported by judicial pronouncements. The Court agreed to examine whether the Tribunal's order went beyond the show cause notice's scope, contrary to legal pronouncements.

Substantial Questions of Law:
The Court agreed to consider three substantial questions of law. Firstly, it aimed to determine if the Tribunal's final order, passed without considering the appellant's arguments and judicial pronouncements, was legally valid. Secondly, the Court sought to assess the Tribunal's decision to overlook communication from revenue authorities accepting the classification of the appellant's activities under taxable "Information Technology Software Services." The Court questioned the correctness of the Tribunal's directive for the appellant to pay taxes under this classification, without providing a set-off for the amount already paid. Lastly, the Court intended to examine whether the Tribunal erred in disregarding decisions from similar matters favoring the appellant, despite being brought to its attention.

Conclusion:
The High Court directed notice to the respondent, setting a returnable date for appearance. The appeal was scheduled for listing on 03.06.2021, indicating the Court's commitment to thoroughly examine the substantial legal questions raised by the appellant regarding the Tribunal's final order and related issues.