2021 (2) TMI 160 - HC - Service Tax

Recovery of service tax based on the returns shown in the income tax returns - HELD THAT - Issue notice. In the meanwhile, there shall be stay of the impugned show cause-cum-demand notice dated 30.12.2020 - Stand over to 15.03.2021.

Summary

Issues: Challenge to show cause-cum-demand notice issued by respondent, jurisdiction of the notice, applicability of service tax on remuneration received by petitioner, reference to relevant legal decisions, stay of the notice.

Analysis:
The High Court of Bombay heard a Writ Petition challenging a show cause-cum-demand notice issued to the petitioner by respondent No.3. The petitioner, a Chartered Accountant, contended that the notice was issued without jurisdiction. The notice was based on the view that the remuneration received by the petitioner from the firm is subject to service tax, which the petitioner had not paid. The petitioner invoked writ jurisdiction, arguing that service tax cannot be recovered based on income tax returns, citing a decision by the Central Excise and Service Tax Appellate Tribunal. The petitioner also mentioned that the appeal filed by the service tax department before the Karnataka High Court and the Supreme Court was dismissed. The Court issued a notice and directed the respondents to file a reply affidavit by the next date. Additionally, the Court ordered a stay of the impugned show cause-cum-demand notice until the next hearing scheduled for 15.03.2021.