The Gauhati High Court, last week stayed a show cause notice issued by the department demanding service tax from the petitioner M/s Mascot Entrade Pvt Ltd for want of jurisdiction after the implementation of the new Goods and Services Tax (GST).
Before the High Court, the counsels for the petitioner, Medha Lila Gope and Nitu Hawelia pleaded that the implementation of the Central Goods and Services Tax (CGST) and omission of Entry 92C of the Constitution, the Service Tax department has no jurisdiction to levy Service Tax.
The counsel for the department asked for some time to obtain instruction from the Government.
Accepting the contentions of the petitioners, Justice Suma Shyam stayed the notice and held that it was issued without jurisdiction since the Constitution has omitted service tax.
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