Petitioner to seek clarification on summons purpose, no coercive action allowed

The court directed the petitioner to seek clarification from the issuing authority regarding the purpose of the summons and present a relevant judgment for consideration. No coercive measures were to be taken by the respondent-authorities until clarification was obtained within four weeks. Both writ petitions were disposed of based on the judgment in the first petition, with miscellaneous applications also deemed disposed of accordingly.

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Issues:
- Imposition of service tax on transactions of supply by a restaurant already subjected to sales tax.
- Validity of summons dated 10-1-2013 under Section 14 of the Central Excise Act, 1944.

Analysis:
1. The petitioner sought relief through a writ petition, challenging the imposition of service tax by Respondents 3 to 5 on transactions of supply by a restaurant already paying sales tax. The petitioner argued that such action was illegal, arbitrary, and without jurisdiction, violating Article 265 of the Constitution of India.

2. The material presented to demonstrate the imposition of service tax was a summons dated 10-1-2013 under Section 14 of the Central Excise Act, 1944. The petitioner's counsel referenced a judgment by the Kerala High Court, indicating that the provision enabling the imposition of service tax had been struck down.

3. Upon examining the summons dated 10-1-2013, the court noted that it did not explicitly state the intention to impose service tax on the petitioner. The summons was issued for an inquiry into non-payment or evasion of service tax by M/s. Sri Devi Restaurant & Bar, without specifying the evader or the party against whom proceedings were to be initiated.

4. The court emphasized that a summons can be issued to any person, including a prospective assessee or a third party, for an inquiry into alleged evasion. The petitioner's assumption that the proceedings were intended for tax imposition was not accepted, and it was advised to appear before the authority to understand the real intention behind the summons.

5. The court directed the petitioner to approach the issuing authority to clarify the purpose of the summons and present the judgment of the Kerala High Court for consideration. No coercive measures were to be taken by the respondent-authorities until the clarification was obtained within four weeks from the date of communication.

6. Both writ petitions were disposed of based on the judgment in the first petition, as the issues on fact and law were identical. The miscellaneous applications, if any, were also deemed disposed of accordingly.

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