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2013 (4) TMI 294 - HC - Service TaxPower to freeze account U/s 87 of the Finance Act, 1994 - Held that:- Going by the language of Section 87 of the Finance Act that any amount payable means that amount adjudged after hearing the show cause notice and this provision of Section 87 is one of the methods of recovery of the amount due and payable after adjudication is done. Moreover, I find from the language of clause (b), there is no power to freeze the Bank accounts. At the most, if it is applied, the money can be claimed from the Bank itself. Such claim can be made only when the final adjudication has been done after quantifying the amount due and payable by the assessee. Under the circumstances, I hold that the impugned order freezing the Bank accounts is not sustainable in the eye of law as this has been passed without having any jurisdiction. The same is accordingly set aside. Taking totality of the fact of the case, I pass following order. I also make it clear in the event, no reply is submitted within the above time, appropriate authority may pass appropriate order in accordance with law after quantification of the amount due and payable. Of course, it would be open for the respondent authority, if so advised, to issue orders strictly in terms of Section 87 Clause (b) of the Finance Act 1994 for recovering the amount by issuing a fresh order after adjudication - The writ petition is allowed.
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