Service Tax Audit by Department - What is Department's Stand After Mega Cabs Judgement?
IN Mega Cabs Vs UOI - , the Delhi High Court declared Rule 5A(2) as amended in terms of Notification No. dated 5th December 2014 of the Central Government, to the extent that it authorises the officers of the Service Tax Department, the audit party deputed by a Commissioner or the CAG to seek production of the documents mentioned therein on demand is ultra vires the FA and, therefore, struck it down to that extent.
In a recent meeting of the Regional Advisory Committee of the Chennai Service Tax Zone, a question was asked,
In light of the Delhi High Court Judgement, wherein it has been held that the new provisions of Audit under Rule 5 A(2)is ultra vires to the Act, what is the reaction of the Department and what is the stand adopted for future?
The Department replied,
It is understood that the Department has gone on Appeal against the decision, until the issue is resolved, current practice would continue .
When a High Court has decided an issue, what is there to be resolved? Should every issue be resolved only by the Supreme Court and will the department disobey the orders of all other courts?