Petitioner's Challenge Dismissed, Allowed Time to Respond

The Court dismissed the petitioner's contentions challenging the show cause notice but allowed for a response within a specified timeframe. It directed no coercive action against the petitioner until adjudication is completed.

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Issues:
1. Quashment of show cause notice for non-application of mind.
2. Vulnerability of show cause notice due to reference to exemption certificate.
3. Vitiation of show cause notice based on advice from Comptroller and Auditor General.
4. Challenge to best judgment assessment and appeal under Article 226.
5. Demand for exemption certificate contrary to law.
6. Interpretation of Section 72 of the Act and best judgment assessment.
7. Consideration of alternative remedy under Article 226.

Analysis:
1. The petitioner sought a writ of Certiorari to quash a show cause notice dated 22nd October, 2010, alleging non-application of mind by the Commissioner of Service Tax. The petitioner contended that the notice lacked reference to legal provisions, making it vulnerable to challenge.

2. The show cause notice was challenged for referencing the need for an exemption certificate under Section 93 of the Finance Act, 1994, despite no legal requirement for such certification. The petitioner argued that demanding an exemption certificate was erroneous and contrary to law.

3. The petitioner argued that the show cause notice was tainted as it was based on advice from the Comptroller and Auditor General of India, suggesting a lack of impartiality in the proceedings. The petitioner sought intervention under Article 226 of the Constitution.

4. The challenge to the best judgment assessment under Section 72 of the Act was raised, contending that it was not appealable and the only recourse was through Article 226. The petitioner relied on a Division Bench decision to support their position.

5. The demand for an exemption certificate by the department was disputed by the petitioner, citing Rule 2(e) of the Cenvat Credit Rules, 2004, which defines exempted services and negates the necessity of an exemption certificate under certain circumstances.

6. The Court analyzed the show cause notice and Section 72 of the Act to determine that a best judgment assessment had not been finalized, rejecting the department's contention that the assessment was completed. The Court clarified the legal position regarding the demand for an exemption certificate.

7. The Court considered the existence of an alternative remedy under Article 226 and emphasized the need for a total lack of jurisdiction or non-application of mind to warrant relief under Article 226. The Court found that the present case did not meet these criteria and directed the petitioner to respond to the show cause notice within a specified period.

In conclusion, the Court dismissed the contentions raised by the petitioner but allowed for a response to the show cause notice within a stipulated timeframe. The Court also directed that no coercive steps be taken against the petitioner until adjudication is completed.

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