Court dismisses petition challenging Service Tax levy for lease periods 2013-14 and 2014-15, directs response consideration.

The court dismissed the writ petition challenging the Service Tax levy for lease periods 2013-14 and 2014-15. However, it directed the respondent to consider the petitioner's reply and issue appropriate orders within four weeks. The court highlighted the importance of responding to petitioner representations, especially in cases involving significant tax amounts. The legal proceedings regarding the Service Tax levy for the mentioned lease periods concluded with the dismissal of the writ petition without costs.

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Issues involved:
Challenge of Service Tax levy for lease period 2013-14 and 2014-15.

Analysis:
The petitioner challenged the Service Tax levy for the lease period 2013-14 and 2014-15. The petitioner, a successful bidder for toll collection, argued that no Service Tax was imposed during the demand made in 2012 and thus, the respondent cannot collect it for the subsequent renewal period of 2013-14. The petitioner's counsel contended that since the Corporation resolved to collect Service Tax from licensees after 27-2-2012, the Service Tax was not collected from the petitioner before that date. The petitioner also submitted a reply on 8-4-2013 stating non-liability for the Service Tax.

The respondent's counsel argued that the petitioner's service is taxable under Rule 65(105) of the Service Tax Rules, making the petitioner liable to pay Service Tax. The Commissioner of Customs issued a show cause notice demanding payment of Service Tax, which was upheld after an appeal by the Corporation. The Corporation decided to recover Service Tax from all licensees post a resolution on 27-2-2012. The respondent contended that the Service Tax for 2012-13 was not collected due to the Corporation's decision to collect it from licensees.

The judgment dismissed the writ petition, stating there was no merit. However, it directed the respondent to consider the petitioner's reply dated 8-4-2013 and pass suitable orders within four weeks. The court emphasized the duty of respondents to reply to petitioner representations, especially when a significant tax amount is due. The writ petition was dismissed with no costs, concluding the legal proceedings regarding the challenge of Service Tax levy for the mentioned lease periods.

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