TMI Blog2014 (3) TMI 656X X X X Extracts X X X X X X X X Extracts X X X X ..... on No. 202 of 2014 - - - Dated:- 5-3-2014 - A. R. Joshi,JJ. For the Appellants : Mr. Yusuf Iqbal Yusufa/w Mr. Neville Majra, Ms. Tabassum Ansari Abdul Rahmani/b M/s. Yusufs Associates, Adv. For the Respondents : Mr. N. Natrajan, Special Counsel for Respondent No.1., Mr. Rajesh More, APP, for the Respondent-State. JUDGMENT 1. Heard the learned Counsel for the applicant. Also heard the learned Special Counsel for the respondent No.1. Also heard the learned APP for the respondent No.2. 2. Present application for bail is preferred by the applicant in the matter of offence punishable under Section 89 read with Section 90 of the Finance Act, 1994. 3. During the arguments it is submitted on behalf of the applicant tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to seven years. 6. The relevant provisions of the Finance Act, 1994 are reproduced hereunder for the sake of ready reference: 89. Offences and Penalties. (1) Whoever commits any of the following offences, namely, - (a) knowingly evades the payment of service tax under this Chapter; or (b) avails and utilises credit of taxes or duty without actual receipt of taxable service or excisable goods either fully or partially in violation of the rules made under the provisions of this Chapter; or (c) maintains false books of account or fails to supply any information which he is required to supply under this Chapter or the rules made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon him, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) If the Commissioner of Central Excise has reason to believe that any person has committed an offence specified in clause (I) or clause (ii) of sub-section (1) of section 89, he may, by general or special order, authorise any officer of Central Excise, not below the rank of Superintendent of Central Excise, to arrest such person. (2) Where a person is arrested for any cognizable offence, every officer authorized to arrest a person shall, inform such person of the grounds of arrest and produce him before a magistrate within twenty-four hours. (3) In the case of a non-cognizable and bailable offence, the Assistant Commissioner, or the Deputy Commissioner, as the case may be, shall, for the purpose of releasing an arrested person on bai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustomers and charged and claimed Rs.2.59 Crores (approximately) as Service Tax upto December, 2013 and only paid Rs.15Lakhs to the Central Government treasury andfailed to pay Rs.2.44 Crores approximately. In the balance sheet as on 31.3.2013, inSchedule 7, the applicant has accepted the liability to deposit the service tax of Rs.2.11 Crores to the Central Government. In his statements dated 21.1.2014 and 22.1.2014 the accused had admitted that he has collected Rs.2.59 Crores of Service Tax, but, had not deposited the same except Rs.15 Lakhs . It is further submitted that the applicant is aware about the provisions of the Service Tax law and had obtained Service Tax registration for rendering taxable service and in the invoices issued he ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... become due and it being a continuing offence the applicant is liable to deposit the entire arrears - which is admittedly more than Rs.50 lakhs . 10. It is also submitted on behalf of the respondent that the present applicant is the Managing Director of M/s. Naidu's Infracon Private Limited and is the person involved in all decision taking matters of company and as such have a potential to tamper with the official records which needs to be submitted to the bank. 11. In support of the submissions on behalf of the applicant, the following authority is cited before the Court : CRM 10939 OF 2013 In the matter of Sudip Das (petitioner) In the said matter before the Calcutta High Court, the bail was granted to the accusedwhohad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt that he is ready and willing to deposit all the outstanding Service Tax to the Central Government but in a time bound programme. The written schedule of payments was given to the learnedCounsel for the Respondent No.1 and he took time to take further instructions from the office of the respondentNo.1. Subsequently, on the next date, the learned Counsel for the respondent No.1 stated that the said schedule is not acceptable to the respondent No.1 and insisted that the entire dues of Service Taxes, already collected by the applicant, shall be deposited with the respondent. 15. In the opinion of this Court considering that it is a continuing offence and as on 10.5.2013 there were huge outstandings definitely beyond the amount of Rs.50 La ..... X X X X Extracts X X X X X X X X Extracts X X X X
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