Petitioners Ordered to Provide Security for Arrears Pre-dating Specified Date

The court directed the petitioners to furnish security for arrears pre-dating a specified date and await the Apex Court's decision, disposing of the writ petitions accordingly. The petitioners were given six weeks to comply and allowed to make further applications based on the Apex Court's ruling.

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Issues:
Application for direction to pay service tax amount due as per interim orders of the Supreme Court.

Analysis:
The Revenue filed applications seeking direction for the writ petitioners to pay the service tax amount due based on interim orders of the Supreme Court. The interim order in the case of Retailers Association of India directed payment of 50% of arrears within specified timelines and required a solvent surety for the remaining amount. However, a subsequent order in the case of Home Solutions Retail India Ltd. stated that no coercive steps should be taken for recovery of arrears of service tax up to a certain date. The petitioners argued that this observation should benefit them, and the Revenue should refrain from coercive recovery for arrears pre-dating the specified date.

The counsel for the Revenue proposed that the petitions be disposed of subject to pending Civil Appeals before the Apex Court, suggesting that petitioners pay 25% of arrears up to a certain date and furnish security for the remaining amount. On the other hand, the petitioners argued that an interim order from the court had already directed a stay on recovery of arrears up to a certain date, making the direction to pay 25% unnecessary. The court considered these arguments and decided to direct the petitioners to furnish security for arrears pre-dating the specified date and await the decision of the Apex Court.

In conclusion, the court ordered the applications accordingly, disposing of the writ petitions subject to the Apex Court's decision. The petitioners were given six weeks to comply with the order and were granted liberty to make further applications based on the Apex Court's decision.

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