Madras High Court Declines To Set Aside Show Cause Notice Issued To Musician Harris Jayaraj By GST Department

The Madras High Court has disposed of a petition filed by musician Harris Jayaraj challenging a show cause notice issued by the Directorate General of GST Intelligence (DCGI). Justice R Suresh Kumar and Justice C Saravanan observed that a co-ordinate bench of the High Court had already ruled that show cause notices could not be challenged and the aggrieved persons could raise their objections before the adjudicating authority/assessing authority. The court thus held that the musician could raise his grounds and objections against the show cause notice before the adjudicating authority/ assessing authority/ revenue and the same could be decided on merits. “Exactly the points that has been raised by the learned counsel appearing for the Petitioner who have challenged against the Show Cause Notice since has been answered by the said decision of the Coordinate Bench of this Court vide common Order dated 04.01.2024 in the matter of the Principal Commissioner of CGST and Central Excise, Chennai vs. M/s.Wunderbar Films Private Limited, in W.A.No.2638 of 2019 and etc. batch, by respectfully following the same, we are inclined to dismiss this Writ Petition also on same terms i.e., open to the Writ Petitioner to reply to the Impugned Show Cause Notice wherein it is for the Writ Petitioner to take whatever grounds/objections against the Show Cause Notice and accordingly the issue can be adjudicated and decided by the Adjudicating Authority/Assessing Authority/Revenue at an earliest point of time preferably within a period of four (4) weeks from the date of filing of the reply/objections by the Writ Petitioner,” the court said. The show cause notice was issued by the department under Section 73 of the Finance Act 1994 for the levy of service tax. Jayaraj submitted that as per the Section, a service meant any activity carried out by a person for another for consideration. Jayaraj pointed out that the service rendered by him was permanent in nature where the entire rights by way of transfer of goods had already been vested with the producer of the films for which he had worked as a musician. Jayaraj also pointed out that in a similar case, where the show cause notice was questioned, the same was quashed by the writ court and relying upon the same, he sought to quash the present show cause notice. The court however noted that the decision relied by Jayaraj was later appealed in the case, the court had ultimately held that no challenge could be made against a show cause notice and it was for the adjudicating authority to proceed with the adjudication and pass orders on merits. The court thus disposed of the plea, giving liberty to Jayaraj to raise his grievances before the authority. Counsel for the Petitioner: Mr.Raghavan Ramabadran Counsel for the Respondent: Mr.M.Santhanaraman Senior Standing Counsel Citation: 2024 LiveLaw (Mad) 384 Case Title: Harris Jayaraj v The Joint Director and Others Case No: W.P.No.28060 of 2019Click here to read/download the judgment

Madras High Court Declines To Set Aside Show Cause Notice Issued To Musician Harris Jayaraj By GST Department

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