The Delhi High Court has issued notice to Centre in a plea seeking to declare Rule 5A of the Service Tax Rules, 1994 as non est and inoperative..The notice was issued in a writ petition preferred by KTC (India), a travel & tour’s operator who is an assesse under the Good and Services Tax Act, 2017. It was listed for hearing before a Division bench comprising Justice S Ravindra Bhat and Justice Prateek Jalan..The Petition filed through Advocates Anurag Ojha and DN Chaturvedi, has assailed a letter by the Commissioner for Central GST Audit II, Delhi, intimating it about the conduct of Service Tax and Central Excise Audit purportedly under Section 174 (2) reads with Rule 5A of the Service Tax Rules, 1994..After the introduction of the Goods and Service Tax Act, the Finance Act, 1994 as well as the Service Tax provisions stood repealed. It is the Petitioner’s case that the saving clause under Section 174 of the Central Goods and Service Tax Act, 2017 did not save Rule 5A so as to enable the Central GST Commissioners to initiate fresh proceedings for audit under the said Rule..“That in petitioner’s respectful submission, a perusal of the said clause of Subsection (2) of Section 174 and other clauses would, prima facie, show that there was no saving of Rule 5A in such manner that fresh proceedings for audit could be initiated in exercise of powers under the said Rule.”.The Petitioner further argues that the basic postulate of the taxing statute hinges upon the fact that there must be clear powers to subject the assesse to a procedure for determination of levy..A taxing statute like criminal enactments is strictly construed and in case of ambiguity, the benefit must be given to assesse, the Petition states..It is further asserted that the assumption of retrospectivity in taxing statute is presumed absent unless specifically provided for or the necessary implications so denote..The Petitioner thus concludes that GST Commissioners have no power under “repealed provisions” to conduct an audit and therefore the communication/notice sent to it was “an apparent illegality”..The Petitioner was represented by Advocate Anurag Ojha of Corporate Judis..The matter would be next heard on March 8, 2019..Read the Petition:
The Delhi High Court has issued notice to Centre in a plea seeking to declare Rule 5A of the Service Tax Rules, 1994 as non est and inoperative..The notice was issued in a writ petition preferred by KTC (India), a travel & tour’s operator who is an assesse under the Good and Services Tax Act, 2017. It was listed for hearing before a Division bench comprising Justice S Ravindra Bhat and Justice Prateek Jalan..The Petition filed through Advocates Anurag Ojha and DN Chaturvedi, has assailed a letter by the Commissioner for Central GST Audit II, Delhi, intimating it about the conduct of Service Tax and Central Excise Audit purportedly under Section 174 (2) reads with Rule 5A of the Service Tax Rules, 1994..After the introduction of the Goods and Service Tax Act, the Finance Act, 1994 as well as the Service Tax provisions stood repealed. It is the Petitioner’s case that the saving clause under Section 174 of the Central Goods and Service Tax Act, 2017 did not save Rule 5A so as to enable the Central GST Commissioners to initiate fresh proceedings for audit under the said Rule..“That in petitioner’s respectful submission, a perusal of the said clause of Subsection (2) of Section 174 and other clauses would, prima facie, show that there was no saving of Rule 5A in such manner that fresh proceedings for audit could be initiated in exercise of powers under the said Rule.”.The Petitioner further argues that the basic postulate of the taxing statute hinges upon the fact that there must be clear powers to subject the assesse to a procedure for determination of levy..A taxing statute like criminal enactments is strictly construed and in case of ambiguity, the benefit must be given to assesse, the Petition states..It is further asserted that the assumption of retrospectivity in taxing statute is presumed absent unless specifically provided for or the necessary implications so denote..The Petitioner thus concludes that GST Commissioners have no power under “repealed provisions” to conduct an audit and therefore the communication/notice sent to it was “an apparent illegality”..The Petitioner was represented by Advocate Anurag Ojha of Corporate Judis..The matter would be next heard on March 8, 2019..Read the Petition:
