The Delhi High Court has limited the tax authorities 
The banks fought for show cause notice If these notices were permitted since the government has simplified the show cause notices within the banks and these banks will plan ₹ 50,000 crore tax with a penalty in their records as according to the practices for the accountants. This will damage the banking industry that banks argued in the court. Justices Rajiv Sahai Endlaw and Asha Menon said after hearing both parties on August 28 “Though we have heard the counsels for the respondents, we have not been able to find any reply to the first of the aforesaid contentions,”
“In the circumstances, it is not deemed apposite to alter the interim order,” they state in July 2019 that the stay will be imposed through the court. This will be gathered next on September 11. Some of the issues such as “Taxing any part of services without consideration, would set a wrong jurisprudence, which would have a rollover effect in goods and service tax (GST) also,” said Rajat Mohan, senior partner at AMRG Associates.
13 banks have received notices from tax officials regarding the service tax on the lowest balances with the amount of 38,000 crores for “treating the commitment of customers to maintain MAB in bank accounts as consideration for banking facilities provided free”.
Several banks such as State Bank of India, Punjab National Bank, Yes Bank, HDFC, Hong Kong and Shanghai Bank reached Delhi high court for relief. Rs 18000 crore penalty has been faced by HDFC bank limited. Tax authorities have signified that the government has chosen the service tax will be charged by increasing the penalty forced by the bank for all the accounts of the people in the bank. The showcase notice will be given by the government until the further declarations.
