2019 (10) TMI 330 - HC - Service Tax

Maintainability of application - payment of outstanding installments alongwith interests - HELD THAT - The tentative revised instalments will be paid punctually by the appellant/applicant by the 7th of each month after June, 2019. On this basis, the instalment for June, 2019 may be paid by the appellant/applicant by 20th June, 2019. But the subsequent instalments shall have to be paid by the 7th of each succeeding month. The merit of this application, which is treated as an application for implementation of the order dated 25th February, 2019, including its maintainability will be decided on the returnable date of this application - If there is failure to pay by the appellant/applicant, the default clause in the said order dated 25th February, 2019 shall become operative. Application disposed off.

Summary

Issues: Provisional interest calculation, payment schedule, maintainability of the application, default clause, additional cause of action

Provisional Interest Calculation:
The High Court directed the appellant to serve another notice on the respondents, specifically the service tax authority. The court provisionally set the interest payable at ?36,89,923, being the admitted amount. The service tax authority was instructed to calculate the outstanding instalments based on this amount starting from June 2019 within a week of receiving a copy of the order. The appellant was required to pay the revised instalments punctually by the 7th of each month after June 2019, with the June 2019 instalment due by the 20th of that month.

Payment Schedule:
The court outlined a payment schedule for the appellant, with subsequent instalments to be paid by the 7th of each succeeding month. Failure to make payments by the appellant would trigger the default clause in the order dated 25th February, 2019.

Maintainability of the Application:
The court clarified that the merit of the application, treated as one for implementing the order dated 25th February, 2019, would be decided on the returnable date. The order pertained to the subject matter of a previous writ application and did not cover any other claims or dues of the service tax authority. The appellant was granted leave to seek relief for any additional cause of action introduced in the application from an appropriate forum.

Default Clause:
In case of default by the appellant in making payments, the default clause in the order dated 25th February, 2019 would become operational.

Additional Cause of Action:
The appellant was permitted to pursue relief for any additional cause of action introduced in the application from an appropriate forum, without affecting the right of the respondents to challenge the maintainability of the rest of the cause of action in the application. Urgent certified copies of the order were to be provided to the parties upon completion of formalities.