Service Tax — On licence fee paid to the Railways –– The petitioners challenged the SCNs. The main issue raised in the impugned notice is about the demand of service tax on RCM basis on the license fee paid by the petitioners to Indian Railways for award of license for operation, management and supply of catering services in the Trains of Indian Railways. The respondent had proposed to recover the service tax on the license fee by treating the same as consideration towards the “support services” provided by the Indian Railways to the petitioners. The counsel for the petitioner(s) submitted that the charges are basically meant to have access in the Railways and the entire amount is paid at the time of payment of the license fee by the licensee. The court observed that the authority issuing notice has reasonably acted upon and narrations have been made that why the authority has come to conclusion by recording such objective satisfaction of fact and has asked for the explanation by way of show cause. Since the petitioners have been given opportunity of hearing, the prayer to quash the show cause at the inception would amount to strangulate the issue which is yet to be adjudicated. The petitions at this stage are premature

Held that:- The Hon’ble High Court dismissed these petitions.