Madras High Court
M/S.Tamil Nadu Chemists & ... vs The Union Of India on 30 June, 2021
W.P. Nos.10574 & 10576 of 2020 & 23694 of 2016
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 30.06.2021
CORAM
THE HONOURABLE DR. JUSTICE ANITA SUMANTH
W.P. Nos.10574 & 10576 of 2020 & 23694 of 2016
and WMP.Nos.12846 & 12849 of 2020 & 20304 of 2016
WP.No.23694 of 2016
M/s.Tamil Nadu Chemists & Druggists Association,
Represented by its Secretary: K.K.Selvan,
N.D-36, 8th Floor, “D” Block, Halls Towers,
No.33, Halls Road, Egmore,
Chennai-600 008. ...Petitioner
Vs.
1.The Union of India,
Represented by its Secretary to Govt.,
Ministry of Finance, Department of Revenue,
North Block, New Delhi.
2.The Joint Commissioner of Service Tax,
Service Tax I Commissionerate,
Newry Towers,
No.2054-I, II Avenue, Anna Nagar,
Chennai-600 040. ...Respondents
1
https://www.mhc.tn.gov.in/judis/
W.P. Nos.10574 & 10576 of 2020 & 23694 of 2016
Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to
issue Writ of Certiorari, to call for the records relating to the Order in Original
Nos.100-104 of 2016-ST-I dated 31.3.2016 passed by the 2nd respondent and to
quash the same as without authority of law and non-est in law since it was passed
after declaration of the provisions Sec.65(25a) (definition of “club or association”)
and Sec.65(105)(zzze) of the Finance Act, 1944 as ultra vires by the Hon'ble High
Court of Gujarat in its decision reported in 2013 (31) S.T.R.645 (Guj,DB) and 2016
(42) S.T.R. 821 (Guj.DB).
WP.Nos.10574 & 10576 of 2020
M/s.Tamil Nadu Chemists & Druggists Association,
Represented by its Secretary: K.K.Selvan,
N.D-36, 8th Floor, “D” Block, Halls Towers,
No.33, Halls Road, Egmore,
Chennai-600 008. ...Petitioner in WP.10574 & 10576/2020
Vs.
1.The Union of India,
Represented by its Secretary to Govt.,
Ministry of Finance, Department of Revenue,
North Block, New Delhi.
2.The Joint Commissioner of GST & Central Excise,
Egmore Division, Chennai North Commissionerate,
Newry Towers, No.2054-I, II Avenue, Anna Nagar,
Chennai-600 040.
2
https://www.mhc.tn.gov.in/judis/
W.P. Nos.10574 & 10576 of 2020 & 23694 of 2016
3.The Assistant Commissioner of GST & Central Excise,
III Division, Service Tax Commissionerate,
Newry Towers, No.2054-I, II Avenue, Anna Nagar,
Chennai-600 040. ...Respondents in WP.10574 & 10576/2020
Prayer in WP.10574 of 2020: Writ Petition filed under Article 226 of the
Constitution of India praying to issue Writ of Certiorari, to call for the records
relating to the Statement of Demand No.08/2017 dated 22.05.2017 issued by the 3rd
respondent and to quash the same as without authority of law and non-est in law
since it was issued after declaration of the provisions Sec.65(25a) and
Sec.65(105)(zzze) of the Finance Act, 1944 as ultra vires by the Hon'ble High Court
of Gujarat in its decision reported in 2013 (31) S.T.R.645 (Guj,DB) and 2016 (42)
S.T.R. 821 (Guj.DB).
Prayer in WP.10576 of 2020: Writ Petition filed under Article 226 of the
Constitution of India praying to issue Writ of Certiorari, to call for the records
relating to the Statement of Demand No.20/2019 dated 23.04.2019 issued by the 2nd
respondent and to quash the same as without authority of law and non-est in law
since it was issued after declaration of the provisions Sec.65(25a) and
Sec.65(105)(zzze) of the Finance Act, 1944 as ultra vires by the Hon'ble High Court
of Gujarat in its decision reported in 2013 (31) S.T.R.645 (Guj,DB) and 2016 (42)
S.T.R. 821 (Guj.DB).
3
https://www.mhc.tn.gov.in/judis/
W.P. Nos.10574 & 10576 of 2020 & 23694 of 2016
(In all WPs)
For Petitioner : Mr.M.A.Mudimannan
For Respondents : Mr.A.P.Srinivas
Senior Standing Counsel
********
COMMON ORDER
Heard Mr.Mudimannan, learned counsel for the petitioner and
Mr.A.P.Srinivas, learned Senior Standing Counsel for all the respondents.
2. In WP.No.23694 of 2016, the challenge is to an order-in-original dated
31.03.2016 levying service tax under Finance Act, 1994 under the head
'Membership of Clubs and Association Service', which liability the petitioner
disputes.
3. Both learned counsel agree that this issue has been dealt with by the
Supreme Court in State of West Bengal Vs. Calcutta Club Limited (2019 29 G.S.T.L.
545 S.C. dated 03.10.2019) which judgment the assessing authority did not have the
benefit of, at the time when the impugned order-in-original was passed.
4. Thus, the impugned order is set aside and the matter remitted to the file of
the Assessing authority to be redone afresh bearing in mind the judgment of the
https://www.mhc.tn.gov.in/judis/
W.P. Nos.10574 & 10576 of 2020 & 23694 of 2016
Supreme Court cited supra. WP.No.23694 of 2016 is disposed in the aforesaid
terms. Connected miscellaneous petition is closed. No costs.
5. WP.Nos.10574 & 10576 of 2020 challenge Statements of Demand (SOD)
for the subsequent periods consequent to order-in-original dated 31.03.2016. Prima
facie, I am of the view that the impugned SODs are totally misconceived insofar as
there was an interim stay of the order-in-original dated 31.03.2016.
6. Be that as it may, the issue on merits is one and the same, touching upon the
liability to tax of the petitioner under the head 'Membership of Clubs and
Association Service'. Thus, the impugned statements of demand are also set aside
and the Assessing authority is directed to hear the petitioner and pass orders for all
the periods in question and in accordance with law and the judgment of the Supreme
Court in Calcutta Club Limited (supra). Let this exercise be carried out within a
period of sixteen (16) weeks from today.
7. WP.Nos.10574 & 10576 of 2020 are disposed as above. Connected
miscellaneous petitions are closed. No costs.
30.06.2021
vs
Index: Yes
Speaking order
https://www.mhc.tn.gov.in/judis/
W.P. Nos.10574 & 10576 of 2020 & 23694 of 2016
DR. ANITA SUMANTH, J.
vs
To
1.The Union of India,
Represented by its Secretary to Govt.,
Ministry of Finance, Department of Revenue,
North Block, New Delhi.
2.The Joint Commissioner of Service Tax,
Service Tax I Commissionerate,
Newry Towers,
No.2054-I, II Avenue, Anna Nagar,
Chennai-600 040.
3.The Joint Commissioner of GST & Central Excise,
Egmore Division, Chennai North Commissionerate,
Newry Towers, No.2054-I, II Avenue, Anna Nagar,
Chennai-600 040.
4.The Assistant Commissioner of GST & Central Excise,
III Division, Service Tax Commissionerate,
Newry Towers, No.2054-I, II Avenue, Anna Nagar,
Chennai-600 040.
W.P. Nos.10574 & 10576 of 2020 & 23694 of 2016 &
WMP.Nos.12846 & 12849 of 2020 & 20304 of 2016
30.06.2021
https://www.mhc.tn.gov.in/judis/
