SURYA TRANSFORMERS Vs. UNION OF INDIA (UOI)

JUDGEMENT

(1.) Heard Sri Praveen Kumar, learned Counsel for the petitioner, Sri S.P. Kesarwani, learned Counsel appearing on behalf of respondent Nos. 2 to 5 and Sri Rajes Tripathi, learned Counsel appearing on behalf of Respondent No. 6.

(2.) By means of the present writ petition, the petitioner is challenging the show cause notice dated 14-7-2009 issued by the respondent No. 3. It appears that the petitioner had entered into a contract with the respondent No. 6 for repairing and testing of Aluminium Wound damaged distribution transformers of 25 to 250 KVA capacities. The petitioner is paying the service tax on the labour charges on the ground that in the contract, prices are separately charged in respect of the labour charges and the material replaced in the execution of such contract. The show cause notice was issued on the ground that the contract is composite contract for repair and maintenance and therefore, on the composite price of such contract, service tax is payable. The petitioner has filed the reply to the show cause notice. It appears that for further clarification, other notices have been issued, which the petitioner has replied. In the present writ petition, the petitioner is challenging the show cause notice on the ground that the petitioner is liable for service tax only on the labour charges and show cause notice issued with the view to levy service charges on the composite price is wholly unjustified and without jurisdiction.

(3.) Learned Counsel for the petitioner submitted that in the show cause notice, the respondent No. 3 has expressed his opinion and therefore, writ petition is maintainable and the notice is to be examined on its merit by this Court. Learned Counsel for the petitioner placed reliance on the decision of the Apex Court in the case of Siemens Ltd. v. State of Maharashtra and Ors., 2006 12 SCC 33 .