2019 (9) TMI 795 - HC - Service Tax

Service Tax Audit - Rule 5A - Held that - Looking into the facts and circumstances of the case and 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 Sections 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
2. Rule DB issuance and notice to respondents
3. Writ petition for stay

Exemption Application:
The High Court allowed the exemption application subject to all just exceptions. The application was disposed of without further details provided in the judgment.

Rule DB Issuance and Notice to Respondents:
In the writ petition, Rule DB was issued, and notice was directed to be served to the respondents. The Additional Solicitor General waived the notice for Respondent No. 1, and the Senior Standing Counsel waived the notice for Respondent Nos. 2 to 4. The writ petition was listed for final disposal on a specific date.

Writ Petition for Stay:
The Court considered the provisions of the Finance Act, 1994, Service Tax Rules, General Clauses Act, and the Central Goods and Services Tax Act, 2017. It found a prima facie case in favor of the petitioner and determined that the balance of convenience was also in the petitioner's favor. The Court noted that the petitioner would suffer irreparable loss if the stay was not granted. Consequently, the Court stayed further proceedings initiated based on specific communications until the disposal of the writ petition. The application for stay was disposed of, and a copy of the order was directed to be given to the counsel.