2020 (1) TMI 1726 - HC - Service Tax

Legal Challenge Resolved: Tax Dispute Hearing Rights Affirmed with Mandatory Three-Month Resolution Timeline

HC ruled in favor of Petitioner, directing Respondents to adjudicate Show Cause Notices within three months. The court mandated that Petitioner must be ... Recovery of service Tax on service sim cards sold by the Petitioner for BSNL (Bharat Sanchar Nigam Limited) - HELD THAT:- Since the Petitioner has cases in their favour, the Petitioner should approach the First and Second Respondents for Adjudication of Show Cause Notice under the Finance Act by citing these decisions. The First and Second Respondents are directed to pass appropriate order within a period of three months from the date of receipt of a copy of this order - Petition disposed off. The Madras High Court, through Justice C. Saravanan, addressed writ petitions seeking a Writ of Prohibition to restrain the First Respondent from proceeding with certain communications dated 2009-2010, alleging lack of jurisdiction. The Petitioner challenged Show Cause Notices issued under the Finance Act, 1994, demanding service tax on SIM cards sold for BSNL, contending that BSNL, as the ultimate service provider, had already collected and paid the service tax, thus negating any liability on the Petitioner.The Petitioner relied on multiple prior orders and decisions from tribunals and appellate authorities supporting their position. The Respondents acknowledged no conflicting decisions exist.The Court held that since favorable decisions exist for the Petitioner, they should seek adjudication of the Show Cause Notices by the Respondents, citing the relevant precedents. The Court directed the Respondents to pass an appropriate order within three months, ensuring the Petitioner is given an opportunity to file a reply and be heard before the order is passed.The writ petitions were disposed of accordingly, with no costs awarded.