2013 (6) TMI 644 - HC - Service Tax

Recovery - stay application is pending before CESTAT - petitioner filed an affidavit stating that she is willing to permit the respondent to retain 50% of Rs.29 ,53,000 /- as a per-condition for filing the appeal before CESTAT provided the respondent effects refund of balance of 50% i.e. Rs.14,76,500 /-. That affidavit is taken on record. - Held that - Recording the submission of the learned counsel and taking on record the affidavit, this petition is disposed of with a direction to the CESTAT to consider the stay application forthwith and pass orders as regards the balance of 50% of the tax demand and respondent is directed to refund Rs.14 ,76,500 /- within a week.

Summary

Issues:
Appeal against order of Adjudicating authority under Finance Act, 1994 pending before CESTAT without interim order; Recovery of service tax demand from petitioner's bank account; Request for refund of 50% of recovered amount; Requirement of security for balance 50% of tax demand.

Analysis:
The petitioner filed an appeal challenging the order of the Adjudicating authority under the Finance Act, 1994, pending before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), without an interim order. Meanwhile, the petitioner failed to obtain a stay order and did not make the payment of the tax demand, resulting in the respondent authority attaching and recovering Rs.29,53,000 from the petitioner's bank account, leading to the initiation of the present petition.

The petitioner's counsel submitted an affidavit from the Proprietrix of the petitioner's travel agency, expressing willingness to allow the respondent to retain 50% of the recovered amount as a condition for filing the appeal before CESTAT, with a request for the refund of the remaining 50%, amounting to Rs.14,76,500. This affidavit was accepted and placed on record for consideration.

On the other hand, the respondent's counsel indicated no objection to retaining 50% of the recovered amount but insisted on the petitioner providing some form of security for the remaining 50% of the tax demand. Following these submissions, the court disposed of the petition with a directive to CESTAT to promptly consider the stay application and make a decision regarding the balance 50% of the tax demand. Additionally, the respondent was instructed to refund Rs.14,76,500 to the petitioner within a week, emphasizing the need for a swift resolution in this matter.