Madras HC refuses to quash GST show notice issued against Harris Jayaraj

CHENNAI: The Madras High Court refused to quash the show cause notice issued against the popular Tamil film music composer Harris Jayaraj by the directorate general of GST intelligence, Chennai regarding levying service tax for his musical works.

The show cause notice cannot be challenged before the High Court, however the petitioner can challenge it before the adjudicating authority, wrote, a division bench of Justice R Suresh Kumar and Justice C Saravanan, while closing the petition moved by Harris Jayaraj.

Referring to the judgment in Vendhar Movies and others vs The Joint Director and others case, the bench came to the conclusion that it is for the assessee to approach the adjudicating authority or assessing authority to make any objection or additional objections.

The objections should be decided by the authority in an independent manner, uninfluenced, unswayed or unfettered, read the judgment.

Further, the bench grant liberty to the composer to approach the adjudicating authority and the decision over the objections should be made within four weeks, the bench added.

In 2018, the respondent issued show cause notice to Harris Jayaraj regarding levying of service tax for his works.

Objected to the show cause notice the composer moved the High Court.

He contend that as per section 65 B (44) of the Finance Act, 1994, the service tax can be levied on a person if he carried out any activity for another, as it can be declared as service.

But it can not apply if that person transferred the title of goods or immovable property, by way of sale, gift or in anyother manner, he said.

In my case, the entire rights by way of transfer of goods have already been vested with the producer of the films for whom i worked, as a musician.

Hence, it does not come under the purview of service within the meaning of Section 65 B (44) of the Finance Act, 1994, he added.