TaxTMI 
TaxTMI 
2019 (4) TMI 523
X X X X Extracts X X X X
X X X X Extracts X X X X
....it petition, the petitioner, a society registered under the Societies Registration Act, 1860 questions initiation of certain proceedings under Chapter V of the Finance Act, 1994 (the 1994 Act). The main content of that chapter has come to be known as service tax. The aforesaid statute stood omitted with effect from 1st July, 2017 upon introduction of Central Goods and Services Tax Act, 2017 (the 2017 Act). The omitting provision is contained in Section 173 of the 2017 Act. This provision stipulates:- "173. Amendment of Act 32 of 1994.- Save as otherwise provided in this Act, Chapter V of the Finance Act, 1994 (32 of 1994) shall be omitted." 2. Section 174 of the 2017 Act contains the saving clause in sub-section (2) thereof. Thi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bligation, liability, forfeiture or punishment, as aforesaid, and any such investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and other legal proceedings or recovery of arrears or remedy may be instituted, continued or enforced, and any such tax, surcharge, penalty, fine, interest, forfeiture or punishment may be levied or imposed as if these Acts had not been so amended or repealed; (f) affect any proceedings including that relating to an appeal, review or reference, instituted before on, or after the appointed day under the said amended Act or repealed Acts and such proceedings shall be continued under the said amended Act or repealed Acts as if this Act had not come into for....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2016-2017 and 2017-18 uptill 30.06.2017) total Value of Exempted services on which service tax has not been paid i.e. availing benefit of Notification No. 25/2012-ST dt. 20.06.2012 under clause 25(a) /9(b) (iii) (Cleaning Services provide to Government/local entities and educational entities). 4. Quarter wise (2016-2017 and 2017-18 uptill 30.06.2017) total taxable value and the abatement claimed under Notification No. 30/2012-ST dt. 20.06.2012 amended vide Notification No. 7/2015-ST dt. 01.03.2015 for the services provided to business entities, if any, under Manpower recruitment/supply services. 5. Contracts/Letters related to claim of services provided to Govt/Local Authority/Governmental Authority & various business enti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ther hand has sought to sustain the action of the authorities on the basis of sub-clause (2) of Section 174 of the 1917 Act only. His argument is that the acts sought to be protected by the saving clause contained in sub-clause (e) of Section 174 (2) of the 1917 Act also includes proceedings to be initiated subsequent to omission of the 1994 Act. In this regard, he has relied upon a judgment of the Hon'ble Guwahati High Court delivered in the case registered as W.P. (C) 2059/2018 (Laxmi Narayan Sahu Vs. Union of India and 2 Ors.) decided on 12th October, 2018. In that decision, demand-cum-show cause notices issued by the Assistant Commissioner under the Central Goods and Services Tax Act were under challenge. It was, inter-alia, held by the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....be continued. 33. A conjoint reading of the provisions laid down in paragraph 37 of Kolhapur Canesugar Works Ltd. (supra) and Section 173 and 174(2)(e) would lead to a conclusion that although Chapter V of the Finance Act of 1994 stood omitted under Section 173, but the savings clause provided under Section 174(2)(e) will enable the continuation of the investigation, enquiry, verification etc., that were made/to be made under Chapter V of the Finance Act of 1994." 6. An order of the Hon'ble Calcutta High Court refusing the interim protection passed on 15th January, 2019 in W.P. 380(W) of 2019 in the case of M/s Gitanjali Vacationville Private Limited & Anr. Vs. The Union of India & Anr. has also been relied upon by Mr. Kumar. He....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in the following phrase: "....... may be instituted, continued or enforced." Of the three situations contemplated in that phrase, the expression which comes for interpretation is "may be instituted". The question is whether such institution ought to have taken place before the omission of the statute and subsequent to introduction of the saving provision. There are two interim orders passed by the Hon'ble High Courts of Gujarat and Delhi. In the case of OWS Warehouse Services LLP Versus Union of India [R/Special Civil Application No. 16226 of 2018], in a similar situation, the order impugned therein has been stayed at ad interim stage. The Hon'ble Delhi High Court in the case of M/s T.R. Sawhney Motors Pvt. Ltd. Versus Uni....