Illegal Ad-hoc EWxemption Notification
Ketan Modi
(Querist) 22 January 2011
This query is : Resolved
Recently I had come across an ad-hoc exemption notification exempting certain assessees from Service Tax liabilities after issuance of SCN. I have in my possession file notings wherein professional tax officers at the rank of Chairman and Member of CBEC had opined that giving retrospective benefit to assessees after issuance of Show Cause is not possible legally. However, Finance Minister, who had himself endorsed this view when the file was presented before him, prevailed upon the CBEC and Revenue Department to introduce the ad-hoc exemption notification thus illegally writing off nearly Rs.225 crore. The provision under which the ad-hoc exemption notification is issued is categorical that it should be in public interest and the reasons must be specified in the notification so issued. FM had prevailed upon the CBEC to issue the notification in public interest without specifying the reasons. Thus it is an illegal order and deserves to be set aside. That is the reasons why I am desirous of challenging it. Just two or three assessees are benefiting from this order and others involved in identical activities have already placed on record that it is discrimination they are subjected to. Hope this gives experts an idea why such illegal acts should be challenged I wish to challange this notification issued before the High Court. Are there any SC/HC orders describing exemption notification with retrospective effect as illegal?
Ketan Modi
S. Bharath
(Expert) 22 January 2011
Good, thought-provoking query.. such practices are non uncommon, where the powers are exercised to benefit a few.. condemned by writ courts as "colourable exercise of power". Per se, i tend to feel that this is to be challenged, but immediately unable to lay my hands on suitable case law/material.. will work on it, though!
Ketan Modi
(Querist) 23 January 2011
Sir,
I would be greatly obliged if some one can help me in getting a citation on such cases. I think this is a rare case in the history of independent India where in powers that be have misused their position without application of mind. I am sure once I move the High Court this can be deleted. But a case law from High Court or Apex Court would strengthen my case. Please Sir/Madam/s you all are experts and today a citizen needs your help in the era of transparent governance that we are looking for. The FM's act is totally illegal and stinks of high level corruption due to connivance with the assessees.
Regards
Ketan Modi
