Supreme Court Of India
Union of India vs. Naval Group Insurance Fund
Section 73
Ranjan Gogoi And R. Banumathi, JJ.
Civil Appeal No.(S) 21778 Of 2017
December 11, 2017
ORDER
1. Leave granted.
2. The challenge in the present appeal is to an order of the High Court of Delhi dated 3rd May, 2017 by which the show cause notice dated 4th October, 2016 issued to the respondent proposing levy of service tax has been set aside with liberty to the appellants to issue a fresh show cause notice.
3. The High Court in the impugned order has recorded a finding that the impugned show cause notice dated 4th October, 2016 insofar as a part thereof is concerned, is not maintainable in view of the amendment to Section 105 of the Finance Act, 1994 by the Finance Act, 2017. However, the High Court had also recorded the fact that the impugned show cause notice in respect of other demands would be valid.
4. The grievance raised before us by the learned counsel for the appellants is that if a fresh show cause notice is to be issued at this stage for the surviving demands the same would be barred by limitation and, therefore, the High Court ought to have directed adjudication of the impugned show cause notice dated 4th October, 2016 insofar as the demands made therein which survive, are concerned.
5. Having heard the learned counsels for the parties and on a due consideration of the matter we are of the view that the High Court ought not to have set aside the show cause notice dated 4th October, 2016 in its entirety and directed issuance of fresh show cause notice. The High Court ought to have kept in mind the question of limitation and on that basis ordered for adjudication of the issues/demands raised in the show cause notice dated 4th October, 2016 which survive and required an adjudication on merits. We accordingly direct that the show cause notice dated 4th October, 2016 in so far as the surviving issues/demands are concerned shall be adjudicated subject to such contentions as may be advanced on behalf of the respondent in its reply/additional reply that may be filed in the matter.
6. With the aforesaid modification of the order of the High Court the present appeal is disposed of.
