FREIGHT SYSTEMS (INDIA) PRIVATE LIMITED Vs. THE COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX AND CENTRAL EXCISE-AUDIT II COMMISSIONERATE

JUDGEMENT

(1.) The writ petitioner challenges notice No.07/2018, dtd. 29/8/2018, for the period from October 2012 to June 2017 calling upon the petitioner to show cause in the following terms:-

(2.) Mr. S.Muthu Venkataraman, learned counsel appearing for the petitioner assails the impugned show cause notice on two grounds. The first ground is that Circulars issued by the Central Board of Excise, Customs and Service Tax as well as Departmental Instructions have formulated a procedure, whereby a process of consultation is envisaged as between the Assessee and the Service Tax Authorities to arrive at an amicable resolution of disputes raised by the Tax Department, prior to escalation of disputes to the level of issuance of show cause notice. The first instruction is dtd. 21/12/2015, in F.No.1080/09/DLA/Misc/15, the second instruction/clarification is dtd. 8/7/2016 in F.No.1080/09/DLA/Misc/15, the third instruction / clarification is dtd. 13/10/2016 in F.No.1080/09/DLA/CC Conference/2016 and the fourth Circular is issued in F.No.96/1/2017-CX/1, dtd. 10/3/2017. According to the learned counsel, the process of consultation has not been followed in the present case.

(3.) The second contention raised by the learned counsel is that the show cause notice seeks to bring to tax the income from certain activities carried out by the petitioner that have been clarified as 'business auxiliary service' or 'business support service', in terms of the Finance Act, 1994. The identical issue has been held in favour of the petitioner for later periods by the Customs, Central Excise and Service Tax Appellate Tribunal (CESTAT), vide its order dtd. 28/3/2018. Thus, even on merits, the impugned Show Cause Notice is untenable in law.