2022 (8) TMI 1243 - HC - Service Tax

Validity of SCN issued - Levy of service tax on municipalities - Renting of immovable property service - Seeking a mandamus forbearing the respondents from proceeding with the investigation with regard to Good and Services Tax under the provisions of the Central Goods and Service Tax Act, 2017 - HELD THAT - Since the issue is only at the stage of show cause notice and several facts have to be ascertained in regard to the nature of transactions and the applicability of the aforesaid decision to the case of the petitioner, this Court is not inclined to interfere at this stage. Suffice it to state that the petitioner is at liberty to establish that the above decision is applicable to its case, and that the authority shall consider the matter, in accordance with law. Petition disposed off.

Summary

Issues:
1. Jurisdictional inconvenience due to location of officers for GST investigation.
2. Challenge to the assumption of jurisdiction under the Central Goods and Service Tax Act, 2017.
3. Quashing of show cause notice based on a previous court decision.

Analysis:

Issue 1: Jurisdictional inconvenience
In W.P.No.28468 of 2021, the petitioner raised concerns about inconvenience in appearing before officers located in Coimbatore and Madurai for a GST investigation when the petitioner is registered in Madras. The court acknowledged the inconvenience but noted that since there was no challenge to the assumption of jurisdiction, it declined to comment further on the choice of the appropriate officer to conduct the proceedings. The petitioner was granted the liberty to request a continuation of the proceedings before an officer at a specific location, which would be considered by the respondents in accordance with the law and normal practice.

Issue 2: Challenge to jurisdiction under CGST Act, 2017
The petitioner in W.P.No.28468 of 2021 sought a mandamus to prevent the respondents from proceeding with the GST investigation under the Central Goods and Service Tax Act, 2017. The court found no legal infirmity in the investigation and upheld the assumption of jurisdiction by the respondent. Consequently, the court dismissed the petition directing that the investigation proceed as per procedure and law.

Issue 3: Quashing of show cause notice
In W.P.No.28080 of 2021, the petitioner requested the quashing of a show cause notice dated 23.12.2020, arguing that the issue was covered by a previous decision of the court in a similar matter. The court noted that the issue was at an early stage, and various facts needed to be ascertained regarding the transactions and the applicability of the previous decision to the petitioner's case. The court declined to interfere at this stage and allowed the petitioner the opportunity to establish the applicability of the previous decision. It was emphasized that the authority should consider the matter in line with the law and the previous decision. The court also mentioned that the previous decision was pending in a writ appeal before the Division Bench without any interim order granted.

In conclusion, both W.P.No.28468 of 2021 and W.P.No.28080 of 2021 were dismissed, along with the connected miscellaneous petitions, without imposing any costs.