2019 (9) TMI 794 - HC - Service Tax

Service Tax Audit - Rule 5A - Held that - Looking to the provisions in Chapter V of the Finance Act, 1994 and Rule 5A of Service Tax Rules read with Sections 6(1) and (2) of the General Clauses Act and Section 173 and 174 of the Central Goods and Services Tax Act, 2017, there is a prima facie case in favour of the petitioner. Balance of convenience is also in favour of this petitioner. - Irreparable loss will be caused to the petitioner, if the stay as prayed for, is not granted. - Audit proceedings stayed. Application disposed off.

Summary

Issues:
1. Exemption application - CM APPL.38193/2019
2. Notice of Rule DB to respondents - W.P.(C) 9264/2019
3. Stay application - CM APPL.38192/2019

Exemption Application (CM APPL.38193/2019):
The exemption application was allowed, subject to all just exceptions, and subsequently disposed of by the court.

Notice of Rule DB to Respondents (W.P.(C) 9264/2019):
In this issue, the court directed to issue notice of Rule DB to the respondents. The advocates for the respondents waived the notice for respondent No.1 and respondents No.2 and 3. The court listed the writ petition for final disposal on 31st January, 2020, under the category of 'After Notice Miscellaneous Matters.'

Stay Application (CM APPL.38192/2019):
The court granted a stay on further proceedings initiated pursuant to specific communications until the disposal of the writ petition. The court found a prima facie case in favor of the petitioner after considering the provisions in Chapter V of the Finance Act, 1994, Rule 5A of Service Tax Rules, Sections 6(1) and (2) of the General Clauses Act, and Sections 173 and 174 of the Central Goods and Services Tax Act, 2017. The court noted that the balance of convenience was in favor of the petitioner and that irreparable loss would be caused if the stay was not granted. Consequently, the application for stay was disposed of by the court.