9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 587 - HC - Service TaxReversal of CENVAT Credit - petitioners compelled to reverse credit before issuance of SCN - Learned Counsel for the Respondents, states that on affidavit the officer of the Respondents stated that there was no threat of arrest ever issued to the Petitioners - HELD THAT - We are, in the facts of the case and evidence placed before us, not impressed with the submissions made on behalf of the Respondents and were proceeding to pass an order finally. At that time, Mr. Kantharia, learned Counsel for the Respondents, sought time to take further instructions and prepare himself better, as this petition was shown under the caption of admission. We grant time at the request of the Revenue - petition will be taken up for final hearing on 30 th July 2019.
Issues:
Challenge to action of compelling payment before issuance of show cause notice under Finance Act, 1994. Analysis: The petition under Article 226 challenges the Respondents' action of compelling the Petitioners to pay ?11.25 crores by reversing Cenvat Credit without issuing a show cause notice under the Finance Act, 1994. The Petitioners argue that the amount was reversed due to threats of arrest during investigation, despite legal opinions stating such arrests are impermissible. They rely on legal precedents to assert that such strongarm tactics by Revenue officers are unlawful and subvert the rule of law. The Petitioners were coerced to reverse the credit without any show cause notice being issued or adjudicated upon. Analysis: The Respondents, represented by Mr. Kantharia, deny issuing any arrest threats to the Petitioners, as stated in an officer's affidavit. They claim a show cause notice has been issued, and therefore, no further orders should be passed. Despite this, the Court is unimpressed with the Respondents' submissions and was inclined to pass a final order. However, Mr. Kantharia requested additional time to prepare better, leading to a postponement of the final decision. The Court grants time at the Revenue's request but schedules the matter for final hearing on 30th July 2019.
|
