Retrospective Exmption
Ketan Modi
(Querist) 20 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 wish to challange this notification issued before the High Court. Are there any SC/HC orders describing exemption notification with retrospective effect as illegal? Can some one help me.
Ketan Modi
R.Ramachandran
(Expert) 20 January 2011
First indicate why do you want to challenge the said Notification?
Advocate. Arunagiri
(Expert) 20 January 2011
Retrospective orders can be passed if it is beneficial one. No illegality.
Ketan Modi
(Querist) 21 January 2011
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 in similar 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 and I need help from you guys.
Ketan Modi
