TVS Srichakra Limited Vs Union of India (Madras High Court)
The matter before the Madras High Court involved two sets of Writ Petitions filed by TVS Srichakra Limited against the Union of India. The first set of petitions (W.P(MD)Nos.1139 of 2021 and 14856 of 2022) sought a declaration that Notification Nos. 14/2017, 15/2017, and 16/2017 dated April 13, 2017, issued by the Secretary, Ministry of Finance, were ultra vires. The petitioners argued the notifications traversed beyond the scope of Section 68(2) of the Finance Act, 1994, and thereby offended Articles 14, 19(1)(g), 245, and 269A of the Constitution of India.
The second set of petitions (W.P(MD)Nos.1143 of 2021 and 14857 of 2022) sought to quash the show cause notices (SCNs) dated December 10, 2020, and April 26, 2022, respectively, which pertained to the period from April 2017 to June 2017.
All learned counsels were in agreement that the relief sought was liable to be granted, as the issue had been decided in favor of the assessee by the Madras, Gujarat, and Bombay High Courts. The Madras High Court noted that the Gujarat High Court in Sal Steels Limited Vs. Union of India had already struck down Notification Nos. 15/2017-ST and 16/2017-ST, along with related Service Tax Rules and the insertion of Explanation-V to reverse charge Notification No. 30/2012-ST, as ultra vires Sections 64, 66B, 67, and 94 of the Finance Act, 1994.
