M/S.Celebrity Corporate Club vs The Additional Director
2022 Latest Caselaw 10927 Mad

                                                                                    WP.No.13527 of 2019


                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED: 23.06.2022

                                                        CORAM

                                  THE HONOURABLE DR. JUSTICE ANITA SUMANTH

                                              W.P.No.13527 of 2019 &
                                              W.M.P.No.13619 of 2019

                     M/s.Celebrity Corporate Club,
                     (formerly known as M/s.Chennai Corporate Club)
                     Represented by its Director,
                     No.3, 5th Floor, City Centre Plaza,
                     Anna Salai,
                     Chennai-600002                                                  ...Petitioner
                                                         Vs.
                     The Additional Director,
                     DGGI Coimbatore Zonal Unit,
                     155-1, Laksmanan Street,
                     Behind Ukkadam Bus Stand, Ukkadam,
                     Coimbatore-641 001                                              ...Respondent


                     Prayer: Writ Petition filed under Article 226 of the Constitution of India, to

                     issue a Writ of Certiorarified mandamus calling for the records of the

                     respondent in his proceedings in Show Cause Notice No.27/2019-St, quash

                     the show cause notice dated 22.04.2019 issued therein and further direct the

                     respondent to keep the proceedings in abeyance till a finality is reached on

                     the order dated 06.02.2018 passed by the Customs, Excise and Service Tax

                     Appellate Tribunal, Chennai, in Final Order Nos. 40366-40385/2018.

                     1
https://www.mhc.tn.gov.in/judis
                                                                                        WP.No.13527 of 2019




                                        For Petitioner    : Mr.R.L.Ramani
                                                            Senior Counsel for
                                                            Mr.Raveendran B.

                                        For Respondent    : Mr.V.Sundareswaran
                                                            Senior Panel Counsel

                                                          ORDER

Both Mr.A.L.Ramani, learned Senior Counsel for Mr.Raveendran B.,

learned counsel on record for the petitioner and Mr.V.Sundareswaran, learned

Senior Panel Counsel would concur on the position that the issue dealt with

under show cause notice dated 22.04.2019 issued under the provisions of the

Finance Act, 1994 levying service tax, will have to be revisited by the Officer

in light of the subsequent judgment of the Supreme Court in the case of State

of West Bengal and Others Vs. Calcutta Club Limited and Others,

[MANU/SC/1367/2019].

2. That apart, learned Senior Counsel would submit that in respect of

earlier periods, the matter had travelled before the Customs Excise and Service

Tax Appellate Tribunal (CESTAT) on the very issue of mutuality as agitated in

the present matter, and that the CESTAT has allowed the appeal of the

petitioner. Thus, on all counts, it would be appropriate that the show cause

notice be set aside with liberty to the respondent to issue a show cause notice

afresh bearing the mind the above judgment.

https://www.mhc.tn.gov.in/judis WP.No.13527 of 2019

3. Let response of the petitioner be sought, the petitioner summoned by

notice, heard, the judgment of the Hon’ble Supreme Court as well as the

CESTAT, as aforesaid, be taken into account and orders passed de novo, in

accordance with law.

4.This writ petition is allowed. Connected miscellaneous petition is

closed. No costs.

23.06.2022

Index : Yes/No Speaking Order ska

To

The Additional Director, DGGI Coimbatore Zonal Unit, 155-1, Laksmanan Street, Behind Ukkadam Bus Stand, Ukkadam, Coimbatore-641 001

https://www.mhc.tn.gov.in/judis WP.No.13527 of 2019

DR.ANITA SUMANTH, J.

ska

W.P.No.13527 of 2019 and W.M.P.No.13619 of 2019

23.06.2022

https://www.mhc.tn.gov.in/judis