SC stays Delhi HC verdict holding Arrest of MakemyTrip Officials by DGCEI without SCN is Unconstitutional

Ambiguity - Supreme Court - Tax - Taxscan

The Supreme Court of India today stayed Delhi High Court verdict declaring arrest of service tax Makemytrip Officials without Show Cause Notice (SCN)  is Unconstitutional.

The bench comprising of Justice J S Khehar and Justice also restrained Service Tax department to not to take any coercive action against Makemytrip and two other companies.

On 1st  September 2016, The division bench of Delhi High Court has quashed arrest of senior official of MakeMyTrip, Ibibo group and Ebiz for alleged service tax evasion and held that, Arrest by Directorate General of Central Excise Intelligence (DGCEI) without show cause notice (SCN) is unconstitutional and legally unsustainable. The Court also directed that, DGCEI to refund Rs. 70 crore to each of the Petitioners, i.e makemyTrip, Ibibi and Ebiz.

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