Delhi HC issued notice to Centre in Plea to declare Rule 5A of Service Tax Rules, 1994 (Service tax audit) inoperative after introduction of GST.

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Delhi HC issued notice to Centre in Plea to declare Rule 5A of Service Tax Rules, 1994 (Service tax audit) inoperative after introduction of GST.

Delhi HC issued notice to Centre in Plea to declare Rule 5A of Service Tax Rules, 1994 (Service tax audit) inoperative after introduction of GST.

Petitioner: KTC (India) Pvt Ltd.

Next date of hearing : 8th March 2019

The Delhi High Court has issued notice to Centre in a plea seeking to declare Rule 5A of the Service Tax Rules, 1994 as non est and inoperative.

The notice was issued in a writ petition preferred by KTC (India), a travel & tour’s operator who is an assesse under the Good and Services Tax Act, 2017. It was listed for hearing before a Division bench comprising Justice S Ravindra Bhat and Justice Prateek Jalan.

The Petition has assailed a letter by the Commissioner for Central GST Audit II, Delhi, intimating it about the conduct of Service Tax and Central Excise Audit purportedly under Section 174 (2) reads with Rule 5A of the Service Tax Rules, 1994.

The Petition has assailed a letter by the Commissioner for Central GST Audit II, Delhi, intimating it about the conduct of Service Tax and Central Excise Audit purportedly under Section 174 (2) reads with Rule 5A of the Service Tax Rules, 1994.

The Petitioner thus concludes that GST Commissioners have no power under “repealed provisions” to conduct an audit and therefore the communication/notice sent to it was “an apparent illegality”.

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