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Travelite (India) vs Uoi And Ors. on 4 August, 2014

3. In this context, the petitioner would draw our attention to the final communication dated 09.10.2018 issued by the CAG rejecting the petitioner's objection to initiation of such audit. The respondents seem to be relying heavily on Rule 5A of the Service Tax Rules, 1994 for exercising such powers of audit. Such Rule 5A, as it stood earlier, was challenged before the Delhi High Court and was struck down, as being unconstitutional, in the judgment in case of Travelite (India) v. Union of India reported in 2014 (35) S.T.R. 653 (Delhi). Before this Court, one Sadbhav Engineering Limited had disputed the authority of CAG to carry out such Service Tax audit.
Delhi High Court Cites 19 - Cited by 27 - S R Bhat - Full Document

Mega Cabs Pvt. Ltd. vs Union Of India & Ors. on 3 June, 2016

5. Counsel for the petitioner submitted that thereafter, Rule 5A of the Service Tax Rules, 1994 was amended. The amended Rule also came to be challenged before the Delhi High Court in case of Mega Cabs Pvt. Ltd. v. Union of India. The Delhi High Court again struck down the Rule in judgment reported in 2016 (43) S.T.R. 67 (Del.). Counsel candidly stated that the Supreme Court has stayed the judgment of the Delhi High Court in case of Mega Cabs Pvt. Ltd. by an order dated 26.09.2016.
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