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TMI Blog2015 (11) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... before liability has been crystallized by way of the assessment order. However, no provision is pointed out to us under which the department can recover disputed tax even before passing any order by competent authority - respondents are directed to return three cheques of HDFC Bank, Baroda to the petitioners and refund the amount of ₹ 5,51,187/and ₹ 6,84,747 - Petition disposed of. - SPECIAL CIVIL APPLICATION NO. 12444 of 2014 - - - Dated:- 10-10-2014 - MR. AKIL KURESHI and MR. VIPUL M. PANCHOLI, JJ. UCHIT N SHETH, ADVOCATE for the Appellant MR JAIMIN GANDHI, ASSISTANT GOVERNMENT PLEADER for the Respondent ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1 Heard learned advocates for the parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs from the customers who purchased the vehicles through them. According to the department, such handling charges form part of sale price of the vehicle and accordingly, Value Added Tax has to be paid on such amount. The petitioners on the othr hand contended that handling charges are collected towards service rendered to the customers and the petitioners pay service tax on such amount. 5 Second issue pertains to profit from RTO tax of ₹ 17,17,460/shown in the Books of Account of the petitioners for the Financial year 20112012. Learned counsel appearing for the petitioners clarified that even this amount was collected towards handling charges, however, its nomenclature is only given as 'profit from RTO' and nature of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority can take certain measures to protect the interest of revenue, even before liability has been crystallized by way of the assessment order. However, no provision is pointed out to us under which the department can recover disputed tax even before passing any order by competent authority. In similar circumstances, this Court, on 14.02.2013 in Special Civil Application No.959 of 2014 passed following order. Upon hearing learned counsel for the parties, the controversy in the present petition gets substantially narrowed down. The case of the petitioner is that there could be no recovery of tax dues unless and until the tax demand is crystallized. In absence of any assessment, the respondent cannot recover taxes. On the other hand, l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment order, if permissible under the law. The amount of ₹ 10 lacs deposited by the petitioners pursuant to the interim order passed by this Court, the Registry is directed to return the same to the petitioners by way of A/c payee cheque, without prejudice to the rights of the department of the final assessment and/or provisional assessment. Rule made absolute to the aforesaid extent. No costs. 11 Under the circumstances, the respondents are directed to return three cheques of HDFC Bank, Baroda to the petitioners and refund the amount of ₹ 5,51,187/and ₹ 6,84,747/. This shall be done latest by 31.10.2014. This is without prejudice to the respondents to complete assessment of the petitioners in accordance with law or to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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