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2018 (10) TMI 1563 - MADHYA PRADESH HIGH COURTRecovery of service tax dues from the first charge on the property - attachment of property - Section 88 of Finance Act, 1994 - the present petitioner has purchased the asset of respondent No.4 from respondent No.5 – SICOM Ltd. which is established by Government of Maharashtra and is a deemed State Financial Corporation as per Section 46 of the State Financial Corporation Act, 1951 - Proviso to Section 87(c) of the Finance Act, 1994. Held that:- It is not in dispute that the business of the respondent No.4 M/s. Ujjain Treasure Bazar Ltd. Indore had been taken over by the petitioner – M/s Future Market Networks Ltd. Mumbai on “as is where is and what is” basis according to the Tri-Party Settlement Order issued by DRT, Mumbai vide order dated 30/07/2014. In these circumstances, the acquisition by the petitioner is not limited to immovable property only but they also acquired entire running business of the respondent No.4 and, therefore the plea of petitioner that they had not taken over the business / liabilities of the respondent No.4 does not appear to be correct. It is an admitted fact that entire business of the respondent No.4 has been transferred to the petitioner and Ujjain Treasure Bazar Mall was under the control and possession of the petitioner. The properties, which were subject to mortgage has been transferred in favour of the petitioner by a consent decree. As per Clause 1(d) and 1(k), the petitioner has virtually taken over the entire business, which they are running since 2013 and, therefore, Section 87(c) applies with full force. The Finance Act and Clause 1(d) and 1(k) Memorandum of Understanding (MoU) are very clear and specific. The transactions so been entered between the parties is covered by Section 87(c) of the Service Tax Act - In the case in hand, as per proviso to Section 87(c) of the Finance Act and Clause (d) and (k) of MoU dated 01.07.2013, the Department is empowered to recover the dues of service tax of respondent No.4 from the present petitioner, who had purchased the mortgaged property of the respondent No.4 from respondent No.5 by a consent decree. Petition dismissed - decided against petitioner.
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