S.D. SENTHILKUMAR Vs. GOVERNMENT OF INDIA

JUDGEMENT

(1.) This writ petition in W.P.(MD)No.24535 of 2022 is filed for writ of Certiorarified Mandamus, to call for the records pertaining to the impugned notification No.6/2015 - Service Tax, dtd. 1/3/2015, published in Government of India Gazette Extraordinary Part II Sec. 3, Sub-sec. (i) No. 120 on 1/3/2015 and to quash the same and all orders / proceedings issued pursuant to the same and consequently, 1st respondent to grant exemption for the petitioner from paying the service tax in respect of the works contract service other than commercial nature to the Government, local bodies, statutory authorities, etc., with effect from 1/4/2015 (or) alternatively, in the event of this Court upholding the impugned notification, to issue Writ of Mandamus, to direct respondents 6 to 8 to pay either the petitioner or directly to the 2nd respondent, the service tax, interest and penalty if any thereon that may be demanded by the respondents 1 and 2 in respect of the works contract service other than commercial nature to the Government of Tamilnadu, with effect from 1/4/2014 to 30/6/2017.

(2.) The petitioner in W.P.(MD)No.24535 of 2022 is registered first class contractor, PWD Department, doing regular public works contract for the respondents 6 to 8 by entering into agreement with the respondents and their subordinate officials. The 2nd respondent passed an assessment order for the period from 1/10/2014 to 30/6/2017 for the service rendered under the category of 'works contract service' to the Government of Tamil Nadu. In the Assessment proceedings, service tax liability to the tune of Rs.48,23,854.00.

(3.) The contention of the petitioner is that the service tax was exempted for the service rendered to the Government for public utility by notification No.25 of 2012 by the Central Government. Subsequently, the exemption impugned notification was withdrawn, vide notification No.6 of 2015, service tax, dtd. 1/3/2015. Hence, the 2nd respondent initiated Service Tax Assessment for the works contractor from 1/10/2014 to 30/6/2017 till the implementation of GST Act. The withdrawal of notification is against the principles of levying and collecting of taxes. Hence, the notification was challenged in several writ petitions questioning the jurisdiction and authority of the respondents. Initially, there was an interim stay for collection of service tax until the validity of the impugned notification is decided. In the mean time, the respondents passed the assessment order. Hence, challenging the assessment order, the present writ petition is filed.