2019 (10) TMI 320 - HC - Central Excise

Implementation of order - payment of installments - withdrawal of the amount from attached accounts - appellant submits that HDFC bank is not allowing the company to withdraw any amount from the account - HELD THAT - We feel that in the absence of this determination by the service tax authority the bank is rightly not permitting appellant no. 1 to make any withdrawal from the attached account. The Commissioner is directed to make an additional decision with regard to the above issue within three weeks of communication of this order. DDepending on his decision HDFC bank will allow the appellant no. 1 to make payment out of the attached account - application disposed off.

Summary

Issues:
1. Implementation of previous court orders regarding installment payments.
2. Decision-making authority of the service tax authority regarding withdrawal from the account.
3. Compliance of banks with court orders regarding deposits and transfers.

Analysis:
1. The appellants sought implementation of previous court orders dated 12th March, 2019 and 3rd April, 2019 regarding installment payments. The Commissioner of Central Tax Kolkata South CGST & CX had granted the appellants 14 installments starting from 27th April, 2019 up to 27th May, 2020, with specific amounts allocated for each installment. However, a decision regarding the proportion of funds the appellant could withdraw from the account for business expenditure was not made by the Commissioner in the order dated 18th April, 2019. This lack of determination led to the bank not permitting any withdrawals from the attached account, as highlighted by Ms. Moumita Sen, the Managing Director of the appellant no. 1.

2. In response to the issue of withdrawal restrictions, the court directed the Commissioner to make an additional decision within three weeks from the communication of the order. Once the Commissioner makes the necessary determination, HDFC bank will be allowed to permit the appellant no. 1 to make payments from the attached account, with any remaining sum to remain attached. The court emphasized the importance of the service tax authority's decision in enabling the appellant to access funds for business expenses without affecting installment payments.

3. Additionally, the court issued a warning to 15 banks mentioned in the order to strictly comply with the directives and not allow any irregular deposits in the mentioned accounts. Any deposits made irregularly should be transferred to the attached bank account maintained by the appellant no. 1 with HDFC bank. This warning was accompanied by a statement indicating that the order was without prejudice to any further actions that the court may take for non-compliance with its directives. The application (CAN 4828 of 2019) was disposed of, and a copy of the order was to be provided to the petitioner-in-person and other parties upon request after fulfilling all formalities.