2016 (10) TMI 835

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....e tax on charges/fees received for and after securitization of future receivables. 3. At the very commencement of the arguments by the learned Senior Counsel appearing for the petitioner, this Court posed a question as to why this writ petition should be entertained as against a show cause notice. 4. The learned Senior Counsel appearing for the petitioner has submitted that the respondent has invoked the extended period of limitation and issued a show cause notice alleging as if the petitioner has suppressed the nature of transaction whereas factually, it is not so and that the petitioner maintains high ethical standards in their accounting. 5. The learned Senior Counsel has referred to a letter sent by the Superintendent of the responde....

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....t and the copy of the sample of deed of assignment, both dated 22.1.2013. By referring to the definition of the term 'servicer fee', it is submitted that whatever service element is there in the transaction, the petitioner has been remitting the service tax periodically and there is no default on this aspect. 8. Hence, it is also submitted that the nature of transaction of the petitioner is, in fact, to sale of the property with full rights being transferred in the assignee and that except for the petitioner, no other non banking financial institution, which has been carrying on similar line of business activity, has been put to such problems and the impugned show cause notice would amount to harassment. 9. I have heard Mr.K.Ravi,....

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....larly paragraphs 35, 36, 37 and 45 to show that the issues involved in the matter are pure questions of fact for the Authority to consider. 13. Thus, taking into consideration the overall circumstances of the case and taking note of the submissions made on either side, this Court is of the considered view that the show cause notice cannot be interdicted at this stage of the matter on the grounds canvassed by the petitioner. This is so because the grounds raised are all pure questions of fact and the impugned show cause notice having been issued under a Taxation Statute, as held by the Division Bench in the case of Nivaram Pharma Pvt. Ltd. Vs. The Customs, Excise and Gold Control Appellate Tribunal [reported in (2005) 2 MLJ 246] following v....