TMI Blog2015 (3) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... verned by the law prevailing at the date of institution of the suit or proceeding, and not by the law that prevails at the date of its decision or at the date of filing of the appeal. The petitioner, in whose case also the lis commenced in 2012, would not be required to deposit the amount of 7.5%, as required pursuant to the 2014 amendment, and in that respect, he would have an efficacious alternate remedy before the Tribunal where he can file an appeal, together with an application for waiver of pre-deposit and stay of recovery of the amounts confirmed against him. If the petitioner prefers a duly constituted appeal under the provisions of the Finance Act, 1994, as they stood prior to 16.08.2014, then the Appellate Tribunal shall num ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt authorities computed the difference between the purchase price and the book value of the receivables and treated this as consideration received by the petitioner for services that they were required to perform under agreements entered into with the assignee banks in connection with the loans that were assigned to them. It is the service tax on the said amounts that was thus arrived at and demanded from the petitioner by Ext.P8 order, which is impugned in the writ petition. 2. I have heard Sri.K.I.Mayankutty Mather, the learned counsel for the petitioner and Sri.Saiby Jose ,Kidangoor , the learned Standing counsel for the respondents. On behalf of the petitioner, it is contended that, in Ext.P8 order, the 2nd respondent, other than mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner, and therefore, to that extent, the issuance of the show cause notice even prior to the completion of that exercise was bad in law. It is further pointed out that the computation of the demand in the impugned order is erroneous in that it does not take into account the fact that there were amounts that were paid by the petitioner to the assignee banks, by way of interest on a discounting arrangement that was in vogue between the petitioner and the assignee bank and, to this extent, the demand in Ext.P8 order is grossly exaggerated. It is also the contention of the petitioner that, as regards the period from 2010-2011, 2011-2012, the confirmation of the demand against the petitioner has been based on an estimation for which there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 72 and 73 while issuing the notices to the petitioner. 4. I have considered the submissions of counsel on either side. I find that Ext.P8 is an order passed by the 2nd respondent, against which the petitioner has an alternate remedy under the provisions of the Finance Act, 1994, as amended to prefer an appeal before the Customs, Excise and Service Tax Appellate Tribunal. The only point that arises for consideration is whether the petitioner would have to deposit the amount of 7.5% of the tax confirmed against him, as a condition for pursuing the appellate remedy before the Tribunal. I note in this connection that recently, a Division Bench of the High Court of Telengana Andhra Pradesh has taken a prima facie view that, in as much as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nate remedy before the Tribunal where he can file an appeal, together with an application for waiver of pre-deposit and stay of recovery of the amounts confirmed against him by Ext.P8 order. At the time of filing the appeal, he will not be required to make any payment as a pre-condition for the hearing of the waiver application by the Tribunal. I, therefore, relegate the petitioner to the alternate remedy available under the Finance Act, 1994, as amended, of approaching the Appellate Tribunal by way of an appeal against Ext.P8 order. It is made clear that the appeal to be filed by the petitioner would be governed by the statutory provisions, as they stood prior to the amendment introduced with effect from 16.08.2014. Thus, without making an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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