TaxTMI 
TaxTMI 
TaxTMI 
2017 (4) TMI 1460
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....ssued by the Addl. Director General, Directorate General of Central Excise Intelligence, Ahemdabad Zonal Unit directing the petitioner to show cause why service tax should not be levied towards the taxable service rendered from 01/04/2008 to 31/01/2013. Facts of the case reveal that the petitioner Company is having licence for a Brewery issued by the M. P. Excise Department in accordance with the statutory provisions as contained under the M. P. Excise Act, 2015. The petitioner Company has entered into a license agreement on 30/01/2008 with SKOL Breweries Ltd., for transfer of their Brewery License against the stipulated initial consideration of Rs. 3,50,00,000/- per annum as liecnse endorsement fee. The petitioner Company has also entere....
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....ation along with interest and penalty for non payment of service tax and the license endorsement fee for the period w.e.f. 1/4/2008 to 31/1/2013 under the taxable category of renting of immovable property service. Though constitutional validity of Sec. 65(105)(zzzz) of the Finance Act 1994 is under challenge, however, during the course of arguments, learned senior counsel appearing for the petitioner has fairly stated before this Court that he is not pressing the relief to the extent the constitutional validity of statutory provisions in the present Writ Petition is under challenge. He has confined his arguments towards the challenge to the Show Cause Notice dated 11/10/2013. Various grounds have been raised while challenging Show Cause Not....
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....nal issue which can even be urged by the recipient of the notice and such issues also can be adjudicated by the authority issuing the very notice initially, before the aggrieved could approach the Court. Further, when the Court passes an interim order it should be careful to see that the statutory functionaries specially and specifically constituted for the purpose are not denuded of powers and authority to initially decide the matter and ensure that ultimate relief which may or may not be finally granted in the writ petition is accorded to the writ petitioner even at the threshold by the interim protection, granted. 6. In the instant case, the High Court has not indicated any reason while giving interim protection. Though, while passing....
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....e petitioner shall have all opportunity to satisfy the authorities in respect of grounds raised in the Show Cause Notice and the present Writ Petition is certainly a premature Writ Petition. Not only this, in the case of Union of India Vs. Kunisetty Satyanarayana, the Hon'ble Supreme Court, in paragraph 13, 14, 15 and 16 has held as under : 13. It is well settled by a series of decisions of this Court that ordinarily no writ lies against a charge sheet or showcause notice vide Executive Engineer, Bihar State Housing Board vs. Ramdesh Kumar Singh and others JT 1995 (8) SC 331, Special Director and another vs. Mohd. Ghulam Ghouse and another AIR 2004 SC 1467, Ulagappa and others vs. Divisional Commissioner, Mysore and others 2001(10)....
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.... in such a matter. In the present case, the Show Cause Notice can never be said to be a Show Cause Notice issued by an Authority without jurisdiction. It is a mere Show Cause Notice and the petitioner show cause before the authorities by filing a proper reply and, therefore, in the light of the aforesaid judgment, the question of interference by this Court, inspite of the fact that a complete mechanism is provided for ventilating the grievance before the authorities, does not arise. Recently, the Division Bench of this Court in similar circumstances in the case of Asha Confectionary Vs. Union of India (W.P.No. 5428/2016, decided on 7/11/2016) while dealing with again a Show Cause Notice issued by the Excise Department under the provisio....
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....ch affects the rights of any party unless the same has been issued by a person having no jurisdiction to do so. It is quite possible that after considering the reply to the show-cause notice or after holding an enquiry the authority concerned may drop the proceedings and / or hold that the charges are not established. It is well settled that a writ lies when some right of any party is infringed. A mere showcause notice or chargesheet does not infringe the right of any one. It is only when a final order imposing some punishment or otherwise adversely affecting a party is passed, that the said party can be said to have any grievance. 15. Writ jurisdiction is discretionary jurisdiction and hence such discretion under Article 226 should not ....