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TMI Blog2014 (4) TMI 882X X X X Extracts X X X X X X X X Extracts X X X X ..... n the show cause notice was issued by the department to which the petitioners have raised their objections, recoveries without adjudication of such disputed taxes was simply not permissible in law. We notice that section 73C of the Finance Act 1994 allows the department to make provisional attachment of the properties of the assessee during the pendency of the proceedings under section 73 or 73A of the Act for the purpose of protecting the interest of the Revenue. Such provision cannot be activated for seeking recovery even before adjudication. Recovery of unpaid tax is to be made as per section 87 of the said Act which provides for the power and procedure for such recoveries - within two days of issuance of show cause notice, the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny, he admitted irregular service tax payments. In some cases, service tax was collected from the customers, but not deposited with the department. In some other cases, service tax was not received though required to be collected. Be that as it may, on the basis of the investigation carried out, the competent authority issued a show cause notice dated 23.10.2013, calling upon the petitioners why service tax of Rs.1,86,94,281 be not recovered with interest and penalties under sections 76 and 78 of the Finance Act 1994 be not imposed. The grievance of the petitioners is that even before the issuance of the show cause notice, the department had issued notices for recovery. On 25.10.2013, barely two days after the show cause notice, the departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partment by now, at best, they may be called upon to deposit difference amount of Rs.8 lacs. The remaining recovery is highly disputed. The petitioners have raised several disputes including the dispute that some of the services having been provided in the special economic zone areas, service tax is not applicable. We are not judging the validity of such contentions. All that we are suggesting is that when the show cause notice was issued by the department to which the petitioners have raised their objections, recoveries without adjudication of such disputed taxes was simply not permissible in law. We notice that section 73C of the Finance Act 1994 allows the department to make provisional attachment of the properties of the assessee during ..... X X X X Extracts X X X X X X X X Extracts X X X X
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