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TMI Blog2024 (9) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... atters will stand relegated to the Officers to be designated in terms of the observations made in para-8 above, at the same stage. Accordingly, such of the writ petitions relating to challenge to show-cause notice are disposed off. Insofar as Writ Petitions relating to challenge to Orders-in-Original, in light of the discussion made hereinabove, the Orders-in-Original stand set aside and the matters are relegated to the Officers to be designated to be reconsidered from the stage of show-cause notice. The Writ Petitions relating to challenge to the Orders-in-Original are disposed off. - HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 5920 OF 2024 (T-RES) C/W WRIT PETITION NO. 5366 OF 2023(T-RES) WRIT PETITION NO. 10276 OF 2023(T-RES) WRIT PETITION NO. 22271 OF 2023(T-RES) WRIT PETITION NO. 23800 OF 2023(T-RES) WRIT PETITION NO. 28265 OF 2023(T-IT) WRIT PETITION NO. 29353 OF 2023(T-RES) WRIT PETITION NO. 382 OF 2024(T-RES) WRIT PETITION NO. 474 OF 2024(T-RES) WRIT PETITION NO. 2119 OF 2024(T-RES) WRIT PETITION NO. 2821 OF 2024(T-RES) WRIT PETITION NO. 4076 OF 2024(T-RES) WRIT PETITION NO. 4094 OF 2024(T-RES) WRIT PETITION NO. 13897 OF 2024(T-RES) WRIT PETITION NO. 16452 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2024 passed in W.P. No. 11154/2023 and connected petitions, reads as follows:- These petitions have been filed calling in question the action of the respondent Department in issuing show- cause notice or having passed the orders-in-original relating to demand sought to be raised under the provisions of the Finance Act, 1994 relating to service tax liability. 2. In all these matters, the proceedings by way of show-cause notice under the Finance Act for service tax liability have been initiated on the basis of inputs received from the Central Board of Direct Taxes on the basis of Form 26AS/Income Tax returns filed. 3. The details of the writ petitions and the stages are as follows: Challenge to Show-cause Notice Challenge to Orders-in- Original Column No.1 Column No.2 WP No. 16891/2022 WP No. 12840/2023 WP No. 13445/2023 WP No. 15832/2022 WP No. 15959/2021 WP No. 3318/2023 WP No. 24822/2022 WP No. 14425/2022 WP No. 8514/2023 WP No. 15018/2022 WP No. 24650/2022 WP No. 12906/2023 WP No. 22063/2022 WP No. 19792/2022 WP No. 25156/2022 WP No. 5896/2023 WP No. 17407/2023 WP No. 11154/2023 WP No. 9765/2022 WP No. 17591/2022 WP No. 1754/2023 WP No. 8858/2023 WP No. 16501/2023 WP No. 7071/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported under the Law. 3. I submit that all the petitioners have averred that the Show Cause Notices (SCN) were issued without the application of mind and further that the department has not verified the books of account and only on presumption have issued these Show Cause Notices. This averment of the petitioner is denied as false, as the department has taken utmost care by applying its mind and by examining the data received from the CBDT. 4. I submit that, Section 66B Finance Act, 1994 is the charging Section and Service is defined in Section 65B(44) and taxable Service is defined in Section 65B (51).The assessee is mandated to get the registration and secure compliance of the obligations placed on him by the Act which is prescribed in Chapter V of the Finance Act, 1994 (hereinafter called the Act ) read with the Service Tax Rules, 1994, the CENVAT Credit Rules, 2004, the Place of Provision of Services Rules, 2012, the Point of Taxation Rules, 2011, and the Service Tax (Determination of Value) Rules, 2006. In terms of Section 70 of the Finance Act, 1994, the petitioner is obligated to self-assess their liability and discharge the applicable tax as per the statutory provisions and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essees' to furnish their documents which are necessary to determine as to whether the assesses had provided taxable service and whether the activity of the assessee falls under the category of the taxable service or non-taxable service. 8. I further submit that, in many of the writ petitions the assessees' did not respond to the letters issued by the department seeking documents/information/clarifications. In spite of several reminders there was no response from the assesses. Hence, the department in absence of any other option, issued the Show Cause Notices on the address provided by the CBDT(address as in PAN/ITR).These show cause notices were issued keeping in mind the statutory time lines. In some cases, even after the issuance of Show Cause Notices, the assessee did not render their reply or failed to produce any document/clarifications. 9. Therefore, in the absence of any clarifications or documents by the assessee, decisions were taken based on available information and the Order-In-Original were passed. No Show Cause Notices were issued by the department where the clarifications with requisite documents were provided in time. Therefore, the allegations of non-applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... premature and a robust appellate remedy is provided by the Law. 12. I submit that the contents stated above are as per records and correct to the best of my knowledge, information and belief which I believe to be true . 6. Learned Senior Counsel Sri. V. Raghuraman has also filed a note in response to the proposal and the same is taken on record. 7. After hearing both sides and though certain issues were raised, however both sides eventually have made a submission that the Court can take note of the affidavit and pass appropriate orders. 8. Upon suggestion of the court, learned Additional Solicitor General has responded positively and has stated that a team of Officers who are competent to pass orders without reference to the territorial jurisdiction would be constituted and from amongst such team of officers designation would be made and cases allotted in order to pass necessary orders from the stage of post show-cause notice which would be done within a period of three months. 9. Needless to state, a bare perusal of all the petitions reveals that the petitioners have raised various contentions which are required to be referred back for consideration by the appropriate authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, the orders-in-original in question would also receive the same treatment, i.e. be set aside as per the directions made above. Wherever demands have been made pursuant to the impugned orders, such proceedings are also set aside. 4. The details of Writ Petitions and stages are as follows:- Sl. No. Writ Petition Number Stage of proceedings (order-in-original/appeal proceedings pending/order in appeal) 1 5920/2024 Order-in-appeal/Order-in-original 2 5366/2023 Order-in-original 3 10276/2023 Order-in-original 4 22271/2023 Show cause notice 5 23800/2023 Order-in-original 6 28265/2023 Order-in-original 7 29353/2023 Order-in-appeal/order-in-original 8 382/2024 Order-in-original 9 474/2024 Order-in-original 10 2119/2024 Order-in-original 11 2821/2024 Order-in-original 12 4076/2024 Order-in-original 13 4094/2024 Order-in-original 14 13897/2024 Order-in-original 15 16452/2024 Order-in-original 16 17288/2024 Order-in-original/Order-in-appeal 17 19386/2024 Order-in-original 5. In light of the observations made above, the writ petitions relating to challenge to show-cause notice, such matters will stand relegated to the Officers to be designated in terms of the observations made in par ..... 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