2014 (8) TMI 820 - SCH - Service Tax

Renting of immovable property - Coercive measure to recover amount - Held that - On each of the appellant s clearing all the arrears as on the said date in three equated instalments, on or before 1st March, 2012; 1st May, 2012 and 1st July, 2012, no coercive steps shall be taken against the appellants for the recovery of the said arrears. However, in the event of default on the part of the appellants in deposit of any one of the instalments by the due date, it will be open to the respondents to recover the entire amount in arrears forthwith - there is no stay of imposition of service tax under sub-clause (zzzz) of clause (105) of Section 65 read with Section 66 of the Finance Act, 1994 (as amended), insofar as the future liability towards service tax with effect from 1st October, 2011, is concerned.

Summary

The Supreme Court granted leave for an appeal regarding arrears of service tax due as of 30th September 2011. The appellants were allowed to clear the arrears in three instalments by specific dates to avoid coercive recovery actions. The Court clarified that there was no stay on future service tax liabilities from 1st October 2011. Civil Appeal No. 8390 of 2011 was tagged with this case.