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Judgment
Shri Anshuman Singh for the petitioner. Shri Sushrut Dharmadhikari for the respondents.
Challenging a notice issued by the Assistant Commissioner, Central Excise and Service Tax, Sagar on 13-9-2011 and 22-3-2010, asking the petitioner to show-cause as to why Service Tax as indicated in the said order be not recovered, petitioner has filed this writ petition.
Even though petitioner has tried to indicate in this writ petition that for the property rented by the Municipal Corporation, Service Tax cannot be levied, but from the return filed by the respondents/revenue and based on certain judgments rendered by a Division Bench of this Court in Writ Petition No. 3422/2011 (O) [Samdariya Builders Private Limited v. Union of India and Others], it is seen that the question with regard to levying of Service Tax on renting out of premises has already been decided and is no more sub judice.
However, Shri Anshuman Singh submits that even if Service Tax is leviable on the premises rented, but if the premises have been rented by a Municipal Corporation in discharge of its statutory duty, then Service Tax is not liable to be fixed.
If that be so, this is a ground which is to be raised by the petitioner before the assessing authority, who have issued the show cause notice and it would be for the assessing authority to consider this objection at the first instance and take a decision. Thereafter, the order of the assessing authority is subject to appeal and further appeal and revision before the appellate authority and Tribunal and, therefore, at this stage interference into the same merely because a notice for assessment and recovery of Service Tax has been issued, is not proper.
Accordingly, it is directed that on the petitioner''s showing cause before the competent authority, the competent authority shall take note of the objections raised by the petitioner, thereafter pass an appropriate order with regard to liability of assessment of the petitioner, and the said order shall be further subject to statutory appeal and revision, available to the petitioner.
Till the assessment proceedings are not concluded after issuing notice to the petitioner and after hearing the petitioner, no coercive steps for recovery of Service Tax can be initiated.
With the aforesaid directions, for the present finding no case for interfere, this petition stands disposed of. Certified copy as per rules.