Writ interference with a tax show cause notice is declined when prima facie taxability and objections remain open.

Writ courts ordinarily will not interfere with a show cause notice where the notice records a prima facie basis for taxability and the assessee can contest it before the adjudicating authority. Here, the service tax notice referred to the petitioner's activities as falling within taxable services both before and after 01.07.2012, with the statutory basis indicated under banking and financial services, business auxiliary services, and renting of immovable property service. The earlier order did not decide taxability on the merits and left the authorities free to proceed in accordance with law. The writ petitions were dismissed, leaving the petitioners to file objections before the department.

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Issues: Whether the writ petitions challenging the show cause notice issued for service tax demand were liable to be entertained, and whether the notice suffered from absence of a determination on taxability.

Analysis: The notice was issued after hearing the petitioner and after scrutiny of the materials furnished. It recorded a finding that the society was engaged in activities falling within taxable services both for the period prior to 01.07.2012 and under the post-01.07.2012 service tax regime. The earlier order relied on by the petitioner did not decide the merits of taxability and only left the respondents free to proceed in accordance with law. In the impugned notice, the authorities had already indicated the statutory basis for treating the activities as taxable, including banking and financial services, business auxiliary services, and renting of immovable property service. At this stage, the Court found no ground to interfere against a show cause notice.

Conclusion: The challenge to the show cause notice failed. The writ petitions were not maintainable for interference at this stage and were dismissed, leaving the petitioners free to file objections before the authorities.

Final Conclusion: The Court upheld the revenue authorities' power to proceed on the basis of the show cause notice and declined to quash it, while preserving the petitioners' right to contest the matter before the adjudicating authority.

Ratio Decidendi: A writ court will ordinarily not interfere with a show cause notice where the notice itself records a prima facie finding on taxability and the petitioner has an adequate opportunity to raise objections before the adjudicating authority.

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