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2018 (9) TMI 1520 - HC - Service TaxAttachment of Bank Account - recovery of amount pending adjudication - case of appellant is that this is without Jurisdiction as the impugned notice dated 30th August, 2018, has been issued when there is no amount adjudicated as payable under the Act after issuing a show cause notice under Section 73 of the Act - Section 87 (b)(i) of the Finance Act, 1994. Held that:- At the stage of adjudication, the Petitioner would have an opportunity to explain the meaning and significance of the alleged admission. Therefore, till such time, as the show cause notice is adjudicated, it cannot be conclusively stated that any amount of service tax was paid by the Petitioner on the basis of forged/ fabricated/bogus challans. This would necessarily have to await adjudication order passed after following the principle of natural justice. Thus, the invocation of Section 87 of the Act, at this stage, would in these facts, be premature. Our Court has in Quality Fabricators & Erectors [2015 (12) TMI 494 - BOMBAY HIGH COURT], has held that Section 87 of the Act, can only be invoked for adopting coercive proceedings for recovery after the authorities determined the amount payable by an assesee on an adjudication order. Without adjudication, no steps for coercive recovery under Section 87 of the Act can be taken by the authorities. The impugned notice dated 30th August, 2018 is quashed and set aside. However, the amount which have already been received by the Revenue consequent to the notice dated 30th August, 2018, would be continued to be retained by the Respondent till the passing of on adjudication order on the show cause notice dated 8th September, 2018 - petition allowed.
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