2015 (3) TMI 481 - HC - Service Tax

Waiver of pre deposit - Attachment of bank account - Held that - in view of the undertaking being given by learned counsel for the petitioner that the amount will be paid as soon as the attachment on the bank account of the petitioner will be released, we direct respondents authorities to release the petitioner s bank account from attachment, subject to the condition that immediately upon release of the bank account from attachment, the petitioner shall deposit with the respondent authorities a further sum of ₹ 26 lacs over and above ₹ 34 lacs already deposited by the petitioner. - Conditional stay granted.

Summary

Issues:
1. Attachment of petitioner's bank account by respondents authorities causing hardship.
2. Pending application under Service Tax Voluntary Compliance Scheme.
3. Dispute over service tax amount payable by the petitioner.
4. Direction to deposit a further sum with respondent authority.
5. Release of bank account from attachment subject to conditions.
6. Clarification on attachment of other properties of petitioner company.

Analysis:
1. The petitioner raised concerns over the attachment of their bank account by the respondents authorities before any adjudication order. The petitioner's counsel highlighted the pending application under the Service Tax Voluntary Compliance Scheme, emphasizing the undue hardship caused by the attachment.

2. The respondents' counsel argued that the petitioner had not paid service tax amounting to approximately Rs. 3 crores, while the petitioner claimed the payable tax amount to be Rs. 2.24 crores. The petitioner had filed an application under the Amnesty Scheme to resolve the issue.

3. The respondents' counsel further stated that even if the petitioner's application under the Amnesty Scheme was accepted, the petitioner would need to pay 50% of the service tax amount by December 2013 and the remaining balance by June 2014.

4. Considering the circumstances, the court adjourned the hearing and directed the petitioner to deposit an additional sum of Rs. 26 lakhs with the respondent authority. The petitioner's counsel assured that the amount would be paid upon the release of the bank account from attachment.

5. The court ordered the release of the petitioner's bank account from attachment, subject to the condition that the petitioner would deposit a further sum of Rs. 26 lakhs in addition to the already deposited Rs. 34 lakhs. This decision aimed to balance the interests of both parties.

6. The court clarified that while the attachment on other properties of the petitioner company would continue, no further coercive action would be taken by the respondents authorities. This decision aimed to provide clarity on the scope of the attachment and the limitations on coercive measures.

This comprehensive analysis of the judgment highlights the key issues addressed by the court and the decisions made regarding the attachment of the petitioner's bank account and other related matters.