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2014 (7) TMI 666 - HC - Service TaxPower of Revenue authority to recover tax from the debtors / bank - petitioner says that this notice is illegal as no money is due and payable by the bank to the writ petitioner unless the writ petitioner asks the bank to pay - whether Section 87 of the Finance Act, 1994, empowers the revenue authority to issue impugned notice intending to recover the amount - Held that:- Section 87 is one of the modes of recovery of the dues payable by debtor. The power given appears to be sweeping and wide in nature. Above provision obliges the third party (here Bank) to pay not only when it becomes due and payable to the debtor, even also the same is being held by the third party, however with precondition that the money must be legally due and actually held. In this case when respondent Bank has not come forward to object to the action of Revenue, we do not see any reason fundamentally to stall the operation of the notice. However, as the Revenue has agreed to hear the petitioner as to quantum of the legitimate amount of tax, we permit the petitioner to make a representation to the Revenue Officer who has issued the notice, within fortnight from the date of receipt of the copy of this order, failing which the notice in question shall be operative - Decided conditionally in favour of assessee.
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