Dismissed

New Sun International Travel Agency v. The Additional commissioner of GST

Madras HC7 Jan 2025WP/28138/2021

Case brief

AI extract

What is this about?

A travel agency sought certiorari to quash an Order-In-Original confirming service tax demand of Rs.74,39,557 with interest and penalty, contending the demand was against a closed firm with a nearly identical name and not against it. The court held no merit in the writ petition, dismissed it, but left liberty to raise the distinct-entity objection when any recovery notice is issued against it.

What the court decided

AI extract

New Sun International Travel Agency Vs The Additional… — GST and Indirect Tax | Madras HC (2025)

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W.P.No.28138 of 2021

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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Dated : 07.01.2025

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Coram:

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THE HONOURABLE MR.JUSTICE C.SARAVANAN

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W.P.No.28138 of 2021

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and W.M.P.Nos.29736 & 29738 of 2021

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New Sun International Travel Agency, Represented by its Proprietor Mr.Abdul Kader, No.17, First Avenue, Stonage Towers, Ground Floor, Ashok Nagar, Chennai – 600 083.

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...Petitioner

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Versus

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1.The Additional Commissioner of GST & Central Excise, South Commissionerate, No.962, M.H.U Complex Nandanam, Chennai – 600 035.

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2.The Joint Commissioner of GST & Central Excise, Vadapalani Division, South Commissionerate, Newry Towers, Ground Floor, Plot No.2054, First Block, 2^nd Avenue, 12^th Main Road, Anna Nagar, Chennai – 600 040.

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3.The Assistant Commissioner of GST & Central Excise, Vadapalani Division, South Commissionerate, Newry Towers, Ground Floor, Plot No.2054, First Block, 2^nd Avenue, 12^th Main Road, Anna Nagar, Chennai – 600 040.

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...Respondents

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1/7

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https://www.mhc.tn.gov.in/judis

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W.P.No.28138 of 2021

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Writ Petition filed under Article 226 of the Constitution of India praying for issuance of a writ of certiorari calling for the proceedings of the respondent no.1 made in C.No.V/15/165/2018-CS Adj dated 09.05.2019 and quash the same as far as petitioner is concern.

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For Petitioner : Mr.S.Senthilnathan for Mr.M.Manimaran For Respondents : Mr.K.Umesh Rao, Senior Standing Counsel

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ORDER

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Heard Mr.S.Senthilnathan, learned counsel for the petitioner and

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Mr.K.Umesh Rao, learned Senior Standing Counsel for the respondents.

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The petitioner herein is engaged in the business of travel and

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tourism. The petitioner has been promptly paying all the statutory taxes. While so, the petitioner received a Letter bearing OC.No.45 of 2019 dated 22.08.2019 from the Superintendent, Vadapalani Range-IV, Chennai South

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Commissionerate, Chennai, wherein, it has been stated as follows:

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“To

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M/s.New Sun Travels,

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No.17, Stoneage Towers, 1^st Avenue, Ashok Nagar, Chennai – 600 083.

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https://www.mhc.tn.gov.in/judis

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W.P.No.28138 of 2021

Dear Tax Payer,

//MOST URGENT//

Sub: Servive Tax – Order-In-Original No.42/2019 dated 09.05.2019 – M/s. New Sun Travels – Reg.

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Please refer to the Order-In-Original No.42/2019-ADC dated 09.05.2019 issued by Additional Commissioner, Chennai South Commissionerate, wherein, a demand of Service Tax of Rs.74,39,557/along with interest and Penalty of Rs.76,96,179/- was confirmed.

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Hence, you are requested to pay the amount as demanded in the above Order and submit the details of payment made in this regard to this Office, or if any appeal intends to file against the OIO, details thereof may also be furnished to this Office immediately.”

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Aggrieved over the same, the petitioner has filed the present writ petition before this Court seeking to quash the Order-In-Original No.42/2019-ADC bearing C.No.V/15/165/2018-CS Adj dated 09.05.2019 passed by the 1^st respondent.

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The case of the petitioner is that the petitioner firm is carrying on its business in the name and style of 'New Sun International Travel Agency'. A proprietary firm viz., M/s.New Sun Travels which was carrying on similar business has closed its business activities on 10.02.2012. The said firm has committed default and hence, it was served with Show Cause

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Notice No.89/2011 dated 19.12.2011 by the respondents.

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https://www.mhc.tn.gov.in/judis

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W.P.No.28138 of 2021

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Thereafter, the 1^st respondent issued Order-In-Original

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No.42/2019-ADC bearing C.No.V/15/165/2018-CS Adj dated 09.05.2019, confirmed the demand of Service Tax of Rs.74,39,557/- along with interest and Penalty of Rs.76,96,179/- for the period from 2006-07 (October 2006) to 2009-10 in terms of Section 73(2) of Finance Act, 1994 r/w. proviso to Section 73(1) to the proprietary firm, M/s.New Sun Travels.

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Further, it is case of the petitioner is that the petitioner firm,

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M/s.New Sun International Travel Agency is different from the M/s.New Sun Travels against whom the Order-In-Original No.42/2019-ADC bearing C.No.V/15/165/2018-CS Adj dated 09.05.2019 was passed by the 1^st respondent. Since the name of said firm and petitioner firm are almost identical, the respondents have attempted to recover the dues of M/s.Sun Travels from the petitioner firm, M/s.New Sun International Travel Agency.

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As far as this case is concerned, this Court is of the opinion that

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there is no merit in the present writ petition.

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https://www.mhc.tn.gov.in/judis

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W.P.No.28138 of 2021

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If it is the specific case of the petitioner that the petitioner firm, M/s.New Sun International Travel Agency and M/s.Sun Travels are two different entities and hence, the Order-In-Original No.42/2019-ADC bearing C.No.V/15/165/2018-CS Adj dated 09.05.2019 passed by the 1^st respondent confirming the demands against the petitioner cannot be maintained and enforced against the petitioner, it is open for the petitioner to take such a stand, as and when, a recovery notice is issued against the petitioner to recover the sum confirmed in the impugned order in Order-InOriginal No.42/2019-ADC bearing C.No.V/15/165/2018-CS Adj dated 09.05.2019.

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In the result, this writ petition is dismissed with above liberty. No

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costs. Consequently, connected miscellaneous petitions are closed.

07.01.2025

mrr

Index : Yes/No

Speaking Order (or) Non-Speaking Order

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https://www.mhc.tn.gov.in/judis

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W.P.No.28138 of 2021

1.The Additional Commissioner of GST & Central Excise, South Commissionerate, No.962, M.H.U Complex Nandanam, Chennai – 600 035.

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2.The Joint Commissioner of GST & Central Excise, Vadapalani Division, South Commissionerate, Newry Towers, Ground Floor, Plot No.2054, First Block, 2^nd Avenue,

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12^th Main Road, Anna Nagar, Chennai – 600 040.

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3.The Assistant Commissioner of GST & Central Excise, Vadapalani Division, South Commissionerate, Newry Towers, Ground Floor, Plot No.2054, First Block, 2^nd Avenue, 12^th Main Road, Anna Nagar, Chennai – 600 040.

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https://www.mhc.tn.gov.in/judis

W.P.No.28138 of 2021

C.SARAVANAN, J.

mrr

W.P.No.28138 of 2021

07.01.2025

https://www.mhc.tn.gov.in/judis

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New Sun International Travel Agency v. The Additional commissioner of GST

Case brief

What is this about?

What the court decided

New Sun International Travel Agency v. The Additional commissioner of GST

Case brief

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