In Brief
Shoeline, an exporter, was served a show cause notice for unpaid service tax on commission paid to overseas agents (July 2004 to March 2006), classified under Business Auxiliary Service. The Joint Commissioner confirmed the demand in February 2008, but Shoeline filed a writ petition only in March 2012—over four years later. Meanwhile, other similar cases established that service tax was not legally payable before 18 April 2006. The High Court dismissed the petition as barred by delay and laches. The Supreme Court held that while Shoeline remained barred by delay from obtaining tax refund, equity required waiving the penalty and interest on a tax that was legally non-existent. Appeal partly allowed.
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