Good News for CBEC in Supreme Court - Mega Cabs and MakeMytrip Stayed
IN the Mega Cabs case - , the Delhi High Court
1. declared Rule 5A(2) as amended in terms of Notification No. 23/2014-Service Tax 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;
2. held that the expression 'verify' in Section 94 (2) (k) of the FA cannot be construed as audit of the accounts of an Assessee and, therefore, Rule 5A(2) cannot be sustained with reference to Section 94(2)(k) of the FA.
3. declared the Circular No. dated 10th December 2014 to be ultra vires the FA and struck it down as such.
The Supreme Court on 26th September stayed the High Court Order - 2016-TIOL-162-SC-ST. (Please also see 06 06 2016)
A day later, yesterday, the much battered DGCEI tasted success in the Supreme Court. In the MakeMyTrip case - , the Delhi High Court lambasted the DGCEI for arresting top executives and realizing alleged tax without even a show cause notice. Even cost was imposed. DDT 2922 02 09 2016 observed, "The story will not end here - the aggrieved DGCEI is sure to take the case to the Supreme Court.". They did and got a stay yesterday.The Supreme Court ordered,
Issue notice. Counter affidavit to be field within 02 weeks and rejoinder within 02 weeks thereafter. High court order stayed. No coercive steps to be taken. Adjudication process should commence within 03 weeks. List the matter on 09 November 2016. In case respondents win the case the entire amount to be refunded with interest. Respondents to co-operate.