JUDGMENT :

G.S. Kulkarni, J.

1. Rule made returnable forthwith. Respondents waive service. By consent of the parties, heard finally.

2. This petition under Article 226 and 227 of the Constitution has prayed for the following substantive reliefs:

“a) that the Hon’ble Court be pleased to issue a writ of mandamus, a writ in the nature of mandamus and/or any other appropriate writ, direction or order, striking down, quashing and setting aside the impugned show cause notice dated 16 March, 2012 issued by respondent no. 1, being “Exhibit A” to the petition, and all proceedings in respect thereof or arising therefrom;

b) pending the hearing and final disposal of the present petition, this Hon’ble Court be pleased to stay the effect of operation of the impugned show cause notice dated 16 March, 2012 issued by the respondent no. 1, being “Exhibit A” to the petition, and any adjudication, act or proceedings sought to be initiated by the respondents pursuant thereto.”

3. The relevant facts are required to be noted: The petitioner, formerly known as S and H Services Pvt. Ltd., was engaged in the construction of a residential complex. For such work, the petitioner had entered into a contract with one Sunny Vista Pvt. Ltd. (for short “Sunny Vista”) for undertaking construction of 10 towers and other works in a township called “Hiranandani Palace Gardens” in a Special Economic Zone. On 31 March, 2009, the petitioner addressed a letter to Sunny Vista Pvt. Ltd. specifying that as per the agreement Rs. 20 crores was to be paid by Sunny Vista as a deposit of refundable nature. The time of refund of such deposit was to be agreed mutually after three years. Accordingly, on 31 March, 2009, Sunny Vista deposited Rs.20 crores as agreed. On 21 October, 2009, the petitioner filed its Service Tax Return in Form ST-3 for the period October, 2008 to March, 2009 declaring the deposit of Rs.20 crores under exempt category, being the services provided to the Special Economic Zone being exempt.

4. On 28 September, 2010, summons was issued by the Superintendent (Anti Evasion) to the petitioner calling upon the petitioner to furnish balance sheet, receipt ledger, contracts, invoices, Agreement and details of amount received from Sunny Vista before the concerned officer on 1 October, 2010. After the receipt of said letter, the petitioner by its letter dated 1 October, 2010 sought time to compile and submit the documents. Such documents were submitted on 6 October, 2010. Thereafter, on 12 November, 2010, statement of Mr. Kamlesh Desai was recorded by the Superintendent (Anti Evasion) under Section 14 of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994. On 28 January, 2011, the Superintendent (Anti Evasion) by his letter of even date sought further information/documents. Such documents were stated to be submitted by the petitioner on 25 March, 2011. Thereafter, again by letter dated 15 April, 2011, the Superintendent (Anti Evasion) requested for certain clarifications from the petitioner, which were provided by the petitioner on 26 April, 2011.

5. On 16 March, 2012, the impugned show cause notice was issued to the petitioner inter alia alleging that the petitioner was not discharging the service tax liability in respect of services provided by it. In the show cause notice, it was alleged that the service provided under the head ‘Business Auxillary Services’ was brought under the service tax net from 1 July, 2003 as per the provisions of Section 65(19) of the Finance Act, 1994. Setting out all the relevant details, it was alleged that the petitioner had contravened the provisions of sections 65, 66, 67 and 68 of the Finance Act, 1994 read with rules 4, 6 and 7 of the Service Tax Rules, 1994, inasmuch as, the petitioner had collected an advance for the services to be provided by it, but had intentionally failed to pay service tax along with education cess and higher education cess amounting to Rs.1,86,76,337/- in terms of Sections 66 and 68 of the