March 13, 2015[2015] 55 taxmann.com 74 (Gujarat)
Service Tax : Prima facie, when demand of tax is yet to be adjudicated, it cannot be said as tax payable, for which recovery powers of section 87 may be available
■■■
[2015] 55 taxmann.com 74 (Gujarat)
HIGH COURT OF GUJARAT
Constant Engineering (P.) Ltd.
v.
Additional Commissioner of Service Tax*
JAYANT PATEL AND S.H. VORA, JJ.
SPECIAL CIVIL APPLICATION NO. 17912 OF 2014
JANUARY 28, 2015
Section 87 of the Finance Act, 1994 read with section 11 of the Central Excise Act, 1944 and section 142 of the Customs Act, 1962 - Recovery - Of sums due to Government - During pendency of adjudication of show-cause notice, department initiated recovery proceedings by way of garnishee proceedings against assessee's customers and bankers - Assessee argued that recovery cannot be initiated during pendency of adjudication - Department argued that assessee had accepted demand - Assessee argued that it had not accepted demand - HELD : Prima facie, when demand of tax is yet to be adjudicated, it cannot be said as tax payable, for which resort to section 87 may be available - However, on facts, department was directed to complete adjudication within specified time, future recoveries were stayed and on consent from both parties, question on applicability of section 87 was directed to remain unconcluded [Paras 3 to 10] [Partly in favour of assessee]
Service Tax : Prima facie, when demand of tax is yet to be adjudicated, it cannot be said as tax payable, for which recovery powers of section 87 may be available
■■■
[2015] 55 taxmann.com 74 (Gujarat)
HIGH COURT OF GUJARAT
Constant Engineering (P.) Ltd.
v.
Additional Commissioner of Service Tax*
JAYANT PATEL AND S.H. VORA, JJ.
SPECIAL CIVIL APPLICATION NO. 17912 OF 2014
JANUARY 28, 2015
Section 87 of the Finance Act, 1994 read with section 11 of the Central Excise Act, 1944 and section 142 of the Customs Act, 1962 - Recovery - Of sums due to Government - During pendency of adjudication of show-cause notice, department initiated recovery proceedings by way of garnishee proceedings against assessee's customers and bankers - Assessee argued that recovery cannot be initiated during pendency of adjudication - Department argued that assessee had accepted demand - Assessee argued that it had not accepted demand - HELD : Prima facie, when demand of tax is yet to be adjudicated, it cannot be said as tax payable, for which resort to section 87 may be available - However, on facts, department was directed to complete adjudication within specified time, future recoveries were stayed and on consent from both parties, question on applicability of section 87 was directed to remain unconcluded [Paras 3 to 10] [Partly in favour of assessee]
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