2020 (12) TMI 151 - HC - Service Tax

Permission for withdrawal of petition - appropriate forum - mixed question of law - Levy of Service Tax - Services availed by the Bank viz., Indian Bank, Adyar, Chennai from the foreign parties for providing Performance Bank Guarantee in Iraq to the customer - HELD THAT - The Appeals are disposed off with a liberty to the Appellant to withdraw the Writ Petition itself - appeal disposed off.

Summary

Issues:
Appeal against the order dismissing Writ Petitions challenging Service Tax liability on services provided by the Assessee through a bank for Performance Bank Guarantee in Iraq.

Analysis:
1. The appeals were filed against the order of a Single Judge dismissing the Writ Petitions challenging the Service Tax liability of the Assessee for services provided through Indian Bank for Performance Bank Guarantee in Iraq. The Assessee argued that certain Trade Notices and orders by the Commissioner of Service Tax supported their case, but the Single Judge ruled against them.

2. The Respondent/Revenue, represented by Mr. T.Pramodkumar Chopda, supported the Single Judge's order. The High Court, after hearing both parties, concluded that the Assessee should not have directly approached the Writ Jurisdiction against the Assessment Order. The issues involved mixed questions of facts and law, such as the applicability of Service Tax even if the Indian Bank had paid it to foreign banks for the services.

3. The Court emphasized that the Assessee should have first filed a regular appeal before the Appellate Authority and then before the Tribunal. Only after a substantial question of law arose from the Tribunal's order could an appeal be made to the High Court. The Assessee's counsel requested to withdraw the Writ Petition and move to the Appellate Authority, which was not opposed by the Respondent's counsel.

4. The High Court disposed of the appeals, granting liberty to the Appellant to withdraw the Writ Petition and approach the Appellate Authority within six weeks. The Court directed that the Appellate Authorities should decide the appeal on its merits in accordance with the law, without being influenced by the Single Judge's observations in the impugned order.

5. The Appellant was given the opportunity to file a regular appeal before the Appellate Forum within the specified time frame, subject to meeting the necessary conditions for filing such an appeal. The Court instructed that the Appellate Authorities should decide the appeals impartially, without considering the Single Judge's remarks in the order under challenge. The Writ Appeals were disposed of with no order as to costs, and the connected Miscellaneous Petitions were closed.