2009 (9) TMI 505 - AT - Service Tax

Recovery of dues waiver In this case (Tri-Bang) held that it is settled law that if a stay petition for waiver of pre-deposit of dues is pending before the Tribunal, the lower authorities should not proceed to recover the dues.

Summary

Issues: Recovery of tax, interest, and penalties despite pending appeal; Action of lower authorities in recovering dues during pendency of stay petition.

Issue 1: Recovery of tax, interest, and penalties despite pending appeal:
The appellant's counsel highlighted that the entire amount of tax, interest, and penalties had been recovered by the lower authorities even though the appeal was pending before the Tribunal. The appeal was filed on a specific date, and a notice was issued to the appellant's Bankers to pay the dues. The counsel emphasized that the amount had been paid and remitted by the bankers to the authorities. Considering these submissions, the Tribunal observed that since the entire amount had been recovered, the stay petition was rendered infructuous and was dismissed accordingly.

Issue 2: Action of lower authorities in recovering dues during pendency of stay petition:
The Tribunal expressed concern over the recurring instances where lower authorities continued to recover dues despite the pendency of stay petitions before the Tribunal. The Tribunal emphasized that such actions were not in accordance with the law, as established by higher judicial forums. It was clarified that when a stay petition for the waiver of pre-deposit of dues is pending before the Tribunal, lower authorities should refrain from proceeding with recovery actions. The Tribunal directed the registry to circulate a copy of this order to all Chief Commissioners and Commissioners under the jurisdiction of the Bench to ensure compliance with the established legal principles.

This judgment serves as a reminder to lower authorities to adhere to legal procedures and refrain from recovering dues when a stay petition is pending before the Tribunal. It underscores the importance of following established legal principles and highlights the need for consistency in applying these principles across jurisdictions.