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TMI Blog2016 (6) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... r alia, to book hotels through its online portal. Held that:- The Petitioners do not dispute the right to investigate and in accordance with law. That they have already attended the offices of the concerned Respondents and once the statement of the Petitioners was recorded goes without saying that on further summons being issued and on called upon to attend the Officers of the Respondents, they will attend and co-operate in these investigations by producing all the documents and answering the requisite queries, subject, of-course, to their rights in law. It is only when these investigations conclude that the authorities would be in a position to take a decision whether to launch any prosecution. In such a prosecution as well, if the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... servants, agents and subordinates from taking or initiating any coercive proceedings for recovery of the amount, styled as 'Service Tax', under the provisions of Finance Act, 1994, without following the mandate of Section 73 and/or 73A thereof and arresting the Directors or employees of Petitioner No.1, including Petitioner Nos.2 and 3, under Section 91, read with Section 89(1)(ii) of the Finance Act, read with Section 83 thereof, and further read with Section 9AA of the Central Excise Act, 1944. 2. This Petition was placed before this Court earlier. Petitioner No.1 is a Company incorporated under the Indian Companies Act, 1956 and, inter alia, engaged in providing Air Travel Agents' services, Rail Travel Agents' services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and them entirely. There is billing done, in which whatever services are rendered by hoteliers and resort owners, they are charged for, including the applicable service taxes. As far as the Petitioners are concerned, they have submitted such documents as would enable the authority to appreciate and understand their business activity, distinct from the hoteliers. The Petitioners are, in their bills, not charging or recovering any amount representing service tax from the customers, who had booked the rooms through their portal. 5. The Petitioners' apprehension is that, during the visit by Respondent No.2, they were informed that their counterpart in Ludhiana has arrested one of the officials of Make-My-Trip for not depositing the serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Tax Act and Finance Act, 1994 and the Rules framed thereunder, so also a compilation containing Judgments, which would, according to the Petitioners, demonstrate that no law would permit initiation of coercive measures, particularly recovery by forceful means, unless there is a prior ascertainment and crystallization of the dues and taxes. 9. It is on such Petition that, initially, on 25th January 2016, the Division Bench of this Court, of which one of us (Coram : S.C. Dharmadhikari, J.) was a party, passed an ad-interim order in terms of prayer clause (c) and that order has been continued. 10. An affidavit-in-reply has been filed on behalf of Respondent Nos.2, 3 and 4. In that affidavit-in-reply, the Petitioners' activitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondents and he, on instructions, has stated before us that the Department has not enquired and/or investigated into the affairs of the Petitioner No.1-Company, except recording of the statements and producing affidavits of the Officers. The Department is empowered to conduct thorough enquiry and investigation, which is stalled by the absence of the Petitioners. The Department will complete the enquiry and, if it strongly believes, with supporting reasons and documents, that a prosecution is required to be launched or could be launched, only then, necessary steps for prosecution would be taken. Merely because there is a provision for prosecution, the same will not be resorted to. 14. Ordinarily, we would not have been required, with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re presently contemplating is to investigate the matter. The Petitioners do not dispute the right to investigate and in accordance with law. That they have already attended the offices of the concerned Respondents and once the statement of the Petitioners was recorded goes without saying that on further summons being issued and on called upon to attend the Officers of the Respondents, they will attend and co-operate in these investigations by producing all the documents and answering the requisite queries, subject, of-course, to their rights in law. It is only when these investigations conclude that the authorities would be in a position to take a decision whether to launch any prosecution. In such a prosecution as well, if the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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