Kerala State Consumer Federation Ltd. Vs Commissioner of Central Tax & Central Excise (Kerala High Court)
The Kerala State Consumer Federation Ltd., being the apex body of Consumer Co-operative Societies in Kerala, was issued a show cause notice (Ext.P1) alleging non-payment or short payment of service tax under the Finance Act, 1994 (the ‘1994 Act’). The petitioner contested the notice, but the respondent confirmed the demands in the show cause notice through an order (Ext.P3), directing the petitioner to pay the specified sums.
The petitioner, represented by Senior Counsel Sri. A. Kumar, argued that it didn’t have a proper opportunity to present its case before the Adjudicating Authority. It was highlighted that the audited accounts weren’t available at the time of adjudication. Moreover, similar issues had been decided in favor of the petitioner in previous adjudications. The petitioner sought a remand for fresh consideration by the respondent, emphasizing the importance of the service tax liability on incentives and discounts, which, if considered, would substantially reduce the demand in Ext.P3.
On the other hand, the Department’s Standing Counsel contended that Ext.P3 was appealable, and no grounds were provided for interference under Article 226 of the Constitution of India. The Department maintained that the issue of previous adjudications could be addressed by the Appellate Authority and that the failure to produce audited balance sheets couldn’t warrant intervention under Article 226 or a reconsideration by the respondent.
