2018 (11) TMI 677 - HC - Service Tax

Reopening of assessment - alleged tax liability under the Finance Act, 1994 - Held that - A notice to reopen assessment has been issued invoking the provisions of the Act of 2017. The issues raised by the parties are yet to be decided. In such scenario, it would be appropriate to direct the authorities to complete the assessment in accordance with law. Such assessment, however, will abide by the result of the writ petition - Petition disposed off.

Summary

Issues:
1. Invocation of provisions of Goods and Services Tax Act, 2017 for reopening assessment under Finance Act, 1994.

Analysis:
The judgment delivered by the High Court of Calcutta pertains to the petitioner challenging the invocation of the Goods and Services Tax Act, 2017 for reopening assessment related to alleged tax liability under the Finance Act, 1994. The petitioner's advocate argued that the Act of 2017 does not authorize authorities to reopen assessments for periods covered by the Finance Act, 1994, and the person issuing the notice lacks jurisdiction to do so. The respondents were present during the proceedings.

The Court noted that a notice had been issued to reopen the assessment based on the provisions of the Goods and Services Tax Act, 2017. However, the Court highlighted that the issues raised by both parties remained unresolved. In light of this, the Court deemed it appropriate to direct the authorities to conduct the assessment in compliance with the law. The assessment process was instructed to proceed, but the outcome would be subject to the result of the writ petition filed by the petitioner.

Furthermore, the Court ordered the respondent to file an affidavit-in-opposition within a week after the upcoming Summer Vacation, with the petitioner allowed to submit a reply within two weeks thereafter. The writ petition was scheduled to be listed under the "For Hearing" category in the Combined Monthly list of July 2018. Additionally, urgent certified website copies of the order were to be provided to the concerned parties upon completion of the necessary formalities.

This judgment underscores the importance of adhering to legal procedures and ensuring that assessments are conducted in accordance with the relevant laws. It also highlights the Court's role in overseeing such matters and ensuring that justice is served in a fair and transparent manner.