Court declines jurisdiction in Co-operative Bank's service tax challenge, directs appeal to Commissioner of Appeals.

The Court declined jurisdiction in the case where a Co-operative Bank challenged an order regarding service tax liability and rejection of a declaration under the Service Tax Voluntary Compliance Encouragement Scheme, 2013. The Court found that the matter involved a disputed question of fact related to the eligibility for the scheme based on the nature of the returns submitted. As such, the Court disposed of the writ petition, directing the petitioner to pursue their appellate remedy before the Commissioner of Appeals, with the time elapsed during the proceedings excluded for any future delay considerations.

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Issues:
1. Petitioner impugning Ext.P5 order passed by the respondent regarding service tax liability and rejection of declaration under Service Tax Voluntary Compliance Encouragement Scheme, 2013.

Analysis:
The petitioner, a Co-operative Bank, challenged the Ext.P5 order passed by the respondent regarding service tax liability under the Finance Act, 1994. The petitioner had not disclosed the liability under Rule 6(3B) of CENVAT Credit Rules, 2004 while filing returns, leading them to seek the benefit of the Service Tax Voluntary Compliance Encouragement Scheme, 2013 by filing Ext.P2 declaration. The impugned order, Ext.P5, rejected this declaration. The petitioner contended that the order did not consider their returns to determine their eligibility for the 2013 Voluntary Compliance Scheme.

The learned Standing Counsel for the respondent argued that the crucial issue was whether the dues were duly declared or not, which necessitated verification with reference to the returns. This, in turn, required a factual investigation, indicating that the petitioner had an alternative remedy before the Commissioner of Appeals.

The Court, after considering the nature of the issues raised, concluded that the matter primarily involved a disputed question of fact. The eligibility for the Voluntary Compliance Scheme hinged on the nature of the returns submitted by the petitioner, indicating the necessity for a detailed factual inquiry. Consequently, the Court found no justification for intervening in the case and declined jurisdiction, disposing of the writ petition and directing the petitioner to pursue their appellate remedy. The Court also specified that the time elapsed during the proceedings before it would be excluded when considering any application for delay, leaving all issues open for further consideration.

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