Service Tax - Only Aggrieved Party Can challenge Notice - Supreme Court
UP State Road Transport Corporation hires private buses on contract basis. The Department feels that the bus owners are liable to pay Service Tax under “rent a cab operator” and asked the UPSRTC to supply a list of bus owners with whom it had entered into contracts. The UPSRTC promptly filed a writ in the High Court pleading that no Service Tax was payable. The Lucknow Bench of the Allahabad High Court dismissed the petition as UPSRTC was not the aggrieved party, as the Department's notice would be on the bus owners.
The UPSRTC took the matter in appeal to the Supreme Court.
The Supreme Court held that UPSRTC had no locus standi to file the writ or the appeal as no notice was issued to UPSRTC by the department. If anybody is aggrieved, it is the private bus owners.
Though a little delayed, we bring you this Supreme Court Order today. Please see Breaking News.