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ST – Recovery of service tax on collection of Toll charges – no coercive action to be taken: HC

2019-TIOL-1515-HC-MUM-ST

IN THE HIGH COURT OF BOMBAY

BENCH NAGPUR

Writ Petition No.4876 of 2019

M/s DPJ-DRA TOLLWAYS PVT LTD

Vs

UNION OF INDIA 
MINISTRY OF FINANCE 
DEPARTMENT OF REVENUE 
NEW DELHI, AND OTHERS

R K Deshpande & Vinay Joshi, JJ

Dated: July 15, 2019

Appellant Rep. by: Shri H I Kothari, Adv 
Respondent Rep. by: Shri U M Aurangabadkar, Assistant Solicitor General for India

ST – SCN dated 09.04.2019 issued for recovery of service tax for the period from October 2013 to June 2017 towards the collection of toll – Challenge made in this petition to the SCN on the ground that the respondent No.3 has no authority to collect the service tax which has already been abolished/repealed with effect from 1-7-2017; that in view of the communications from the Ministry of Finance dated 22-2-2012 and 21-5-2019clarifying that the service by way of access to a road or a bridge on payment of toll charges is included in the Negative List, no service tax can be levied on the service.

Held: Issue notice for final disposal of the matter returnable on 09.09.2019 – Petitioner at liberty to file reply to the SCN – Proceedings may be continued, however, no coercive steps be taken for recovery of the amount of service tax, if any order is passed: High Court

Matter posted

JUDGEMENT

Issue notice for final disposal of the matter, to the respondents, returnable on 9-9-2019.

Shri U.M. Aurangabadkar, the learned ASGI, waives service for the respondents.

The challenge in this petition is to the show cause notice dated 9-4-2019

issued by the respondent No.3Additional Director General, under the Directorate General of GST Intelligence, Nagpur. The said show cause notice is for recovery of an amount of Rs.22,45,85,750/- towards the dues of service tax for the period from October 2013 to June 2017 towards the collection of toll. The show cause notice is challenged on the ground that the respondent No.3 has no authority to collect the service tax which has already been abolished/repealed with effect from 1-7-2017. The learned counsel for the petitioner has invited our attention to the communications from the Ministry of Finance dated 22-2-2012 and 21-5-2019clarifying that the service by way of access to a road or a bridge on payment of toll charges is included in the Negative List, which means that no service tax can be levied on the service.

The petitioner shall be at liberty to file the reply to the show cause notice. The proceedings may go on; however, no coercive steps shall be taken for recovery of the amount, if any order is passed.

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