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2020 (10) TMI 58 - HC - Service TaxSVLDR scheme - recovery of short paid duty in terms of interest contemplated under Section 87 of Finance Act, 1994 - HELD THAT:- This Court, without going into the other aspects relating to the 2019 Scheme, would confine this lis to the validity of the recovery notice issued by respondent No.4 as per Annexure-M. When this matter was heard at length, this Court had directed Sri K.V. Aravind, learned counsel appearing for the respondent Nos.1 to 5 to secure instructions in regard to break-up payments made by the petitioner. The petitioner has made payments in the months of April, May, June, till December, 2017 and on all these dates several payments are made towards the declared amount. If these payments are taken note of, then the computation of interest determined by the respondent No.4 runs contrary to Section 110 of Service Tax Voluntary Compliance Encouragement Scheme, 2013. On perusal of these payments made by the petitioner, prima facie, this Court finds that the interest is computed on the declared amount. In fact this Court is of the view that the interest should have been computed on unpaid dues and not on declared amount. Since the impugned notice clearly gives an indication that interest is levied without taking note of partial payments, I am of the view that the order under challenge is not sustainable and the same needs to be quashed with a direction to the respondent No.4 to re-compute the interest by taking note of the payments made on various dates towards the declared amount. Keeping open the contentions raised by the petitioner, writ petition is disposed of directing the respondent No.4 to re-compute the interest by taking note of the payments made on various dates by the petitioner towards the declared amount. The impugned recovery notice issued vide Annexure-M is quashed. The respondent - Bank is directed to permit the petitioner to operate the Bank Account over and above ₹ 5 lakhs - Petition disposed off.
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