M/S.Sarala Security Services vs. Joint Commissioner, CGST

Heard Mr. Jnanesh Mohanty, learned counsel for the petitioner and Mr. T.K. Satapathy, learned Sr. Standing Counsel, GST, Central Tax and Customs.

The petitioner has filed this writ petition seeking to quash the adjudication order dated 30.07.2019 under Annexure-19 and to direct the opposite parties to re-adjudicate the same afresh. It has also prayed to declare that the show cause proceeding initiated under already repealed act after omission of the Chapter V of the Finance Act, 1994 upon introduction of the Central Goods & Service Tax (CGST) Act, 2017 with effect from 01.07.2017 as illegal, arbitrary, without juri iction and not sustainable in the eye of law.

Mr. J. Mohanty, learned counsel appearing for the petitioner contended that similar matter was there before the Delhi High Court in Mega Cabs Pvt. Ltd. v. Union of India, 2016 (43) STR-67 (Del) and the said High Court declared Rule 5A of the Service Tax Rules, 1994 as unconstitutional. According to him, the same has been challenged by the department before the apex Court, which is still pending. Therefore, this writ petition may be disposed of in terms of the judgment passed in Mega Cabs Pvt. Ltd. (supra).

Mr. T.K. Satapathy, learned, learned Sr. Standing Counsel, GST, Central Tax and Customs, though admitted the aforesaid fact, but contended that since the matter is pending before the apex Court, he wants to take instruction what is the status of the case before the apex Court.

Having heard learned counsel for the parties and without expressing any opinion on the merits of the case, this Court is of the opinion that since similar matter has already been decided by the Delhi High Court in the case of Mega Cabs Pvt. Ltd, this writ petition may be disposed of in terms of the said judgment, which is under adjudication before the apex Court.

In view of the above, this writ petition stands disposed of in terms of the judgment rendered by the Delhi High Court in Mega Cabs Pvt. Ltd (supra),