TMI Blog2007 (10) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... ers on the allegation of non-payment’ of service tax. The petitioners have challenged in this writ petition the legislative competence of the Union Government to levy service tax on hire-purchase agreement and lease financing services. - As regards recovery of service tax, if any, let no step be taken for coercing such payment but the respondent shall be at liberty to raise demand in accordance wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation and in particular the manner of investigation of the petitioners on the allegation of non-payment' of service tax. The petitioners have challenged in this writ petition the legislative competence of the Union Government to levy service tax on hire-purchase agreement and lease financing services. Admittedly both these items have been covered under the provisions of Chapters 5 and 5A (sic) (Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 lakhs towards service tax. In particular, grievance has been made out that the summons has been issued requiring attendance of the officers and directors of the petitioner-company and they are being examined for long hours through the night. At this stage, however, I am not inclined to stall the investigation. But Mr. Roy Choudhury is agreeable to confine the investigation and in particular exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covery of dues which are under dispute. Action under this section is to be taken only as a last resort in cases where assessees are not cooperating or investigations are to be completed expeditiously. This section should not be used for harassing the top management for forcing them to pay up demands which are disputed by them. For recovery of demands normal procedure under the law should be follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no penal action will be taken against the petitioner and respondent no. 4 and in this order, a submission has been recorded by the learned Counsel for the Revenue Authority that they would not take any penal action at that moment. Mr. Roy Choudhury, however, submits that his clients have not taken any penal or coercive action in this matter. Let urgent xerox certified copy of this order be suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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