Associated Chambers of C. and I. of India vs Commr. of S.T.

The writ petitioner''s grievance is that the respondents issued the impugned notices dated 18-10-2012 in W.P. (C) 2781/2013 and dated 24-10-2011 in W.P. (C) 2782/2013, and have demanded service tax. It is contended that these composite notices under Sections 72 and 73 of the Finance Act, 1994 are untenable. Several grounds in support of the petition have been urged; two of them are worthy and require to be recorded. The first is that the petitioner is beyond the purview of service tax incidence given the nature of the definition of club and association services introduced for the first time w.e.f. 16-6-2005. The second is that once the authorities adopted the route to best judgment under Section 72, the petitioner effectively stood deprived of the right to appeal. This Court has considered the submissions including the Revenue''s reliance upon an order of this Court in W.P. (C) 2800/2013, i.e., N.B.C. Corporation Ltd. Vs. Commissioner of Service Tax, .

The Court is of the opinion that the composite nature of the show cause notices issued and impugned in these cases cannot be construed as ousting or depriving the petitioners right to appeal given that Section 73 which empowers the authorities to invoke the extended period of limitation has been expressly invoked. We are also of the opinion that the other questions pertaining to legality and jurisdiction as well as from their levying of the service tax given the nature of the petitioners activity can be suitably agitated before the adjudicating authority.

In the light of above, the concerned Commissioner of Service Tax, Delhi shall pronounce upon and decide all objections taken by the petitioner and replies to the show cause notices and deal with them expressly. In case of any adverse order, the petitioner is at liberty to avail the appellate remedies under Section 86 of the Finance Act, 1994. The writ petitions are disposed of in terms of the above observations and directions.