2021 (4) TMI 127 - HC - Service Tax

Maintainability of petition - SCN was issued without Jurisdiction - Section 73(1) of the Finance Act 1994 - dispute on question of facts - HELD THAT - The petitioner has submitted that no services were being provided from the State of Rajasthan whereas a perusal of the show cause notice reveals that it has been averred therein that office of the petitioner was situated in the State of Rajasthan and the services were also being provided from the State of Rajasthan. Thus the present case involves disputed questions of facts. Hence the present case cannot be said to be a case where prima facie it is established that the show cause notice has been issued without jurisdiction. There are no ground for interference by this Court - petition dismissed.

Summary

Issues:
Challenge to show cause notice jurisdiction, maintainability of writ petition, disputed questions of facts in show cause notice.

Analysis:
The petitioner challenged a show cause notice issued by respondent no.4, claiming it was without jurisdiction. The petitioner argued that the writ petition was maintainable. The Advocate General contended that the writ petition was not maintainable as the petitioner could raise all necessary pleas before the competent authority. Reference was made to a similar case where the Gujarat High Court quashed a show cause notice under Section 73(1) of the Finance Act, 1994, but the Supreme Court set aside the High Court's decision. The Supreme Court emphasized that writ petitions should not be entertained at the show cause notice stage unless there is a lack of jurisdiction or violation of natural justice principles. The court found that the present case involved disputed facts regarding the location of services, indicating that the show cause notice was not issued without jurisdiction.

In light of the factual background, the court concluded that there was no basis for interference in this case. The petition was dismissed, but the petitioner was allowed to raise all available pleas before the competent authority in response to the show cause notice. The judgment highlighted the importance of not entertaining writ petitions at the show cause notice stage unless there are specific grounds such as lack of jurisdiction or violation of natural justice principles. The decision emphasized the need to address disputed facts and issues before taking any further action.