Bombay High Court
Aashish Behram Kasad vs The Deputy Commissioner Of Gst Division ... on 7 May, 2024
Author: B. P. Colabawalla
Bench: B. P. Colabawalla
2024:BHC-OS:7488-DB
8 wpl 9378-24.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
LAXMI
SUBHASH
SONTAKKE WRIT PETITION (L) NO. 9378 OF 2024
Digitally signed
by LAXMI
SUBHASH
SONTAKKE
Date: 2024.05.08
16:19:01 +0530 Aashish B. Kasad .. Petitioner
Versus
The Deputy Commissioner of GST
(Division VI) & Anr. .. Respondents
Adv. Nishant Thakkar a/w Jasmin Amabadwala i/b. Lumiere Law
Partners for the Petitioner.
Adv. Y. R. Mishra a/w S. R. Ketkar for Respondent No.1.
CORAM: B. P. COLABAWALLA &
SOMASEKHAR SUNDARESAN, JJ.
DATE: MAY 07, 2024
P. C.
1. The above Writ Petition is filed inter-alia challenging the
impugned show cause notice dated 30th December, 2020 [Exhibit-H to
the Petition] and the impugned order dated 11 th January, 2024
[Exihibit-T to the Petition].
2. To put it in a nutshell, the issue involved in the present
Petition is that the 1st Respondent has brought to tax remuneration
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8 wpl 9378-24.doc
earned by the Petitioner in her capacity as a partner of Ernst and Young
LLP as service tax under the Finance Act, 1994. According to the
Petitioner, the remuneration paid to the partner is not amenable to
service tax at all, and hence, a challenge to the show cause notice as well
as the impugned order referred to by us earlier.
3. We have heard the learned Counsel appearing for the
Petitioner as well as the learned Advocate appearing for Respondent
Nos. 1 and 2. We find that the issue raised in the present Petition is
squarely covered by a Division Bench Judgment of this Court in the case
of Amrish Rameshchandra Shah Vs. Union of India & others. [Writ
Petition No. 387 of 2021 decided on 8 th March, 2021] as well as in the
case of Fali Jehangir Hodiwalla Vs. The Union of India and others [Writ
Petition No. 3437 of 2021 decided on 28 th March, 2022]. Incidentally,
the Writ Petitions filed by these individuals, namely, Amrish
Rameshchandra Shah and Fali Jehangir Hodiwalla were also partners of
Ernst and Young LLP. In the case of Amrish Rameshchandra Shah
(supra), a similar show cause notice was issued and he had filed Writ
Petition No. 387 of 2021. The Division Bench of this Court, on 8 th
March, 2021, quashed show cause notice with a clarification that the
Respondent would be at liberty to pursue with the verification as to the
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8 wpl 9378-24.doc
income of the Petitioner received from other resources and may issue
fresh show cause notice in accordance with law if the circumstances so
warrant. The exact same view was also taken in the case of Fali Jehangir
Hodiwalla (supra). We see no reason to take a different view in the
present matter.
4. In light of the above, we pass the following order:
a) We quash and set aside the impugned show cause notice dated
30th December, 2020 [Exhibit-H to the Petition] and the
impugned order dated 11th January, 2024 [Exihibit-T to the
Petition]. We clarify that the Respondent would be at liberty to
pursue the verification as to income of the Petitioner received
from other resources and may issue a fresh show cause notice in
accordance with law if the circumstances so warrant.
b) The learned Counsel appearing for the Petitioner, has fairly stated
that if a fresh show cause notice is issued, the Petitioner would
not raise the question of limitation. The said statement is duly
accepted.
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8 wpl 9378-24.doc
5. The Writ Petition is accordingly disposed of. No order as to
costs.
6. Before parting, we would like to bring to the attention of
the 1st Respondent, who has issued the show cause notice and passed the
impugned order, that when a binding Judgment of this Court is brought
to its notice, he is bound to the same. In the present case, he has failed
to follow the binding decisions of this Court though they were brought
to his notice. We do not propose to take any action against him as this is
the first infraction. However, if this continues in the future, we will not
hesitate to take appropriate action.
7. This order will be digitally signed by the Private Secretary/
Personal Assistant of this Court. All concerned will act on production by
fax or email of a digitally signed copy of this order.
[SOMASEKHAR SUNDARESAN,J.] [B. P. COLABAWALLA, J.]
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Laxmi
