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2013 (12) TMI 1639 - HC - Service TaxRecovery of service tax due and payable by the service provider M/s. Ashish Enterprises - section 87 of FA - Held that:- Considering the provision of Section 87 of the Act when any amount payable by a person to the credit of the Central Government is not paid, the Central Excise Officer shall proceed to recover the amount by one or more of the modes mentioned in Section 87 of the Act and as per Section 87(b)(i) of the Act, the Central Excise Officer may, by notice in writing, require any other person from whom money is due or may become due to such person, or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central Government either forthwith upon the money becoming due or being held or at or within the time specified in the notice, not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount. Thus, there can be a recovery of the amount due and payable by the service provider from the petitioner, out of the amount which is due and payable by the petitioner to the service provider and which is held by the petitioner - Therefore, when an amount of more than ₹ 2 crores is due and payable by the petitioner to the service provider, which is held by the petitioner to be paid to the service provider, out of which the petitioner is directed to make payment of ₹ 38,27,023/ towards the Service Tax due and payable by the service provider, it cannot be said that the impugned notice/communication is in anyway without jurisdiction and/or without authority under the law. The impugned demand is absolutely in consonance with Section 87 of the Act. It cannot be said that the impugned demand is illegal and/or arbitrary and/or without jurisdiction and authority under the law - appeal dismissed.
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