Case Law Details
International Association of Drilling Contractors Vs Union of India & Ors. (Bombay High Court)
Bombay High Court held that validity of circular no. 80/10/2004-ST dated 17 September 2004 cannot be examined vide the present petition as the same is already subject matter of contention in the show cause notice issued to one of the petitioner’s member M/s. Transocean Offshore International Ventures Ltd. and hence designated officer will adjudicate the same.
Facts- The petitioner an association of drilling contractors is before the Court in the present proceedings assailing the circular no. 80/10/2004-ST dated 17 September 2004 issued by the respondents on service tax leviable on “survey and exploration of minerals”. The petitioners have contended that by virtue of the impugned circular the services of prospecting of minerals are now made to fall within the ambit of taxable entry under Section 65(105) (zzv) of the Finance Act,1994.
Conclusion- Held that neither any proceedings are initiated nor any proceedings in regard to the other members are pending before the department. The circular as challenged in the petition, was issued almost 19 years back. The department has also not taken any action and the members of petitioner since 2007 are paying service tax under the category of ‘mining services’.
In our opinion, in a petition which is filed by the association, it may not be appropriate for us to examine the validity of the impugned circular. The same is already subject matter of contention in the show cause notice issued to one of the petitioner’s member M/s. Transocean Offshore International Ventures Ltd., and it would be for such member of the petitioner, who would be entitled to raise all contentions in regard to the circular by raising all permissible contentions in law and on facts. If such contentions are raised, certainly they fall for consideration of the Designated Officer who would, if at all, is to adjudicate the show cause notice.
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