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TMI Blog2018 (11) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... elhi. 2. The main issue raised in the impugned show cause notice by the Respondent-Service Tax Department against the Government of Karnataka Undertaking - KPTCL is that in the contracts awarded by the KPTCL to other various Contractors for erection of poles, installation of transformers, setting up of Sub Stations, maintenance of Sub stations etc., KPTCL has retained certain amounts from the total contract value from the Vendors - Contractors known as 'Retention Amount' and also the 'Earnest Money Deposit' made at the time of giving of Tenders, which after a particular period was forfeited and treated as 'penalty' by KPTCL, imposed on the Contractors for not fully executing the work in terms of the contract and that 'Retention amount' was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise & Service Tax, LTU, Bangalore, vide Annexure-F dated 12.02.2016, but before the said show cause notice could be adjudicated by the said concerned authority, the petitioner-KPTCL chose to file this writ petition in this Court and a coordinate Bench of this Court granted the interim order staying the operation of the impugned show cause notice on 09.06.2017, but however, later on, a question about the maintainability of the writ petition was raised on 17.09.2018 and the matter was fixed firstly for arguments on the question of maintainability of the writ petition. 5. Mr. V.Raghuraman, learned counsel appearing for the petitioner - KPTCL submitted that the said show cause notice issued by the Commissioner of Central Excise & Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act is fully within the legislative competence of Union of India and it does not detain this Court on a frivolous contention like this. There is nothing unconstitutional and ultra vires in the said definition. 9. This Court is surprised at the frivolous kind of plea raised by the Government Undertaking Corporation just to invoke the extraordinary jurisdiction of this Court against the Union of India challenging the vires of certain definition clause in the Tax levy enactment, which has stood for so long. Whether the services rendered by the petitioner-assessee are really taxable or not can be a matter of debate and legal contentions, but not the definition clause itself defining the objects and subjects of taxation itself, for which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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