LEMON TREE HOTELS LTD. Versus UNION OF INDIA THROUGH SECRETARY MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) ANR ANR
Service Tax
2018 (9) TMI 853 – DELHI HIGH COURT – 2018 (16) G. S. TL. 183 (Del.)
DELHI HIGH COURT – HC
Dated:- 10-8-2018
W.P.(C) 1728/2018, C.M. APPL.7172/2018
Service Tax
MR. S. RAVINDRA BHAT AND MR. A. K. CHAWLA, JJ.
For The : Through : Sh. Sanjeev Anand with Sh. Varun. K. Bala and Sh. Ankit Singh, Advocates
For The Respondents : Ms. Sangita Rai, Advocate, for UOI.
ORDER
The petitioner had approached this Court claiming directions that common investigations be carried out having regard to the nature of its business functioning and having regard to the fact that M/s. Lemon Tree Hotels Ltd. maintains common accounts and, therefore, prepares balance sheets on the basis of common centralized inputs. It is evident from the pleadings and the submissions made that separate investigation at the local levels have been carried out by the authorities agai
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, Chandigarth, Chennai and Pune, the assessee is not providing records to facilitate investigations, citing the High Court's order dated 08.03.2018 and their own pending request for a common investigator. There is a stalemate and hence it is not possible for the department to choose or indicate the unit whose investigations can be proceeded with, in the light of High Court's order dated 08.03.2018.
(ii) Further, the High Court may also be informed that although DGGI has an all India jurisdiction, each and every case involving entities at different locations is not taken up by it. It often requests the local Commissionerates to initiate action. It is practically impossible for DGGI to take up all cases involving multiple locations. In the present case, parallel investigations involving units of M/s. Lemon Tree have been proceeding and ordinarily, would have concluded either by October 2018 or April 2019, keeping in mind the limitation provisions in the Finance Act, 1994. At the momen
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estigations to proceed and conclude and then it is open to the assessee to request for a common adjudicator.
(iv) If the High Court is disinclined to consider this plea, then it may only direct which location can proceed with the investigation since as per reports received from the field formations, none of them are in a position to proceed because of the assessee's refusal to provide records to facilitate investigations.
Sd/-
(Dr. Sreeparvathy S.L.)
Under Secretary (Service Tax)”
It is evident from the above extracts that the nature of investigations carried out in the M/s. Lemon Tree Hotels Ltd. resulted in material and information gathering which are of a different kind. Although the petitioner seeks general directions that common investigations be carried out, the Court is of the opinion that grant of such relief at this stage would not be expedient. Instead, the respondents shall, at a later stage of the investigation, nominate a senior officer or Commissioner to rev
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