2007 (10) TMI 260 - HC - Service Tax

Business of leasing operation & supervisory work - petitioner s grievance is that they applied for registration under Business Auxiliary Service but they were registered in the category of C/F services after 22 months of making of that application held that petitioner will pay service tax under BAS till final decision is taken, registration certificate under C/F Agent Service will not be given effect - Commissioner shall adjudicate dispute on its own merits

Summary

Issues:
1. Registration under Service Tax Act as Business Auxiliary Services.
2. Deemed registration provision under Service Tax Rules, 1994.
3. Discrepancy in registration category by Service Tax Authorities.
4. Jurisdiction of Service Tax Authorities.
5. Direction for re-examination of the petitioner's case by the authorities.
6. Continuation of Service Tax payment under existing category.
7. Disposal of the writ petition without calling for affidavits.

Analysis:
The judgment pertains to a writ petition filed by a company engaged in leasing operation and supervisory work for coal supply, seeking registration under the Service Tax Act as Business Auxiliary Services. The petitioner alleged that despite the absence of rejection, they were registered under a different category of clearing and forwarding services after twenty-two months of application, leading to a dispute regarding the liability to pay Service Tax dating back to 1999. The Court refrained from delving into the categorization issue pending appeals in the Tribunal but focused on whether the petitioner could be unilaterally registered in a different category without proper adjudication. The Service Tax Authorities contended that the matter was factual, and they were willing to re-examine the case to address jurisdictional concerns.

The Court, after hearing both parties, directed that the registration certificate granted to the petitioner should not be given effect. The Commissioner Service Tax was tasked with re-evaluating the petitioner's case within six weeks, providing a reasoned decision within a week thereafter. The petitioner was instructed to continue paying Service Tax under the business auxiliary service category until a final decision was reached by the Commissioner. The writ petition was disposed of without requiring affidavits, with a clarification that no observations on merit were made, emphasizing that the Commissioner would adjudicate the dispute on its own merits. No costs were awarded, and all parties were instructed to act upon a signed copy of the order.