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2019 (2) TMI 959 - HC - Service TaxRelease of attached Bank accounts - garnishee notices - Recovery of outstanding amount of service tax from fixed deposits - petitioner agreed to provide the detailed workings of interest liability for delayed payment of service tax as well as for GST. - Held that:- Section 87 provides for recovery of any amount due to Central Government. Where any amount payable by a person to the credit of the Central Government under any of the provisions of this Chapter or of the rules made thereunder is not paid, then, the Central Excise Officer shall proceed to recover the amount by one or more of the modes mentioned in sub-clauses of this section - Section 73 deals with a situation of collecting tax not paid to the Government and section 73A enables this collected amount to be recovered and remitted to the Central Government. In the present case, what we find is that two or three letters were addressed, one of which was of 19th September, 2018. The petitioner pointed out the nature of business and then urged that the petitioner's major clients went out of business leaving it with huge outstanding overheads. It has pointed out that it has taken all the contingency measures. It has also pointed out the hardship on account of the notices under section 87 of the Finance Act, 1994. What we have on record, therefore, is a request to withdraw these notices. These are on several grounds. The petitioner, in one of its communications has stated that it does not carry out any activities in India and therefore, the provisions of the Finance Act, 1994 do not apply. The petitioner, therefore, disputes its liability to pay service tax and interest. Instead of this court going into these disputed issues, in facts peculiar to this case and without this order being treated as a precedent for the future cases, the respondents should provide an opportunity to the petitioner so as to make good its case and particularly the stand in the writ petition. The petitioner has raised several grounds. It has also said that it does not carry out activities in India. It has also raised the issue with regard to the activity of catering undertaken by it and urged that this is a deemed sale and not leviable to service tax - the petitioner has specifically stated that section 87 cannot be resorted to unless the determination of the disputed issues takes place. Merely because there is a self assessment done does not mean that the petitioner can be saddled with such recovery notices. The petitioner has also alternatively and without prejudice pointed out its financial difficulties and claimed that the appropriation or adjustments could not have been made towards the alleged interest liability. The petitioner should be given an additional opportunity to make good its case - the petitioner is given an opportunity to appear before the Commissioner, CGST, Mumbai West Commissionerate, Mumbai, who shall, after the personal hearing is concluded, pass a reasoned order. Bank accounts released from attachment - garnishee notices kept in abeyance - petition disposed off.
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