Writ petitions on frozen municipal accounts were declined as statutory appeals were pending, with expeditious appellate disposal directed.

Writ petitions challenging freezing of municipal bank accounts for recovery of service tax dues were not entertained because the assessees had already invoked statutory appellate remedies against the underlying assessment orders and the recovered amounts had been realised under the freezing instructions. In that setting, no substantive relief was granted in the writ proceedings. However, because the account freezing had caused practical hardship, the Court directed the appellate authority to dispose of the pending appeals expeditiously and on merits.

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Issues: Whether the writ petitions challenging freezing of municipal bank accounts for recovery of service tax dues could be entertained when statutory appeals were pending and whether any ancillary direction for expeditious disposal of those appeals was warranted.

Analysis: The petitions arose from coercive steps taken to recover service tax confirmed against the municipalities. The Court noted that the amounts had already been realised pursuant to the freezing instructions and that the assessees had already availed statutory appellate remedies against the assessment orders. In that situation, no substantive relief could be granted in the writ petitions. Considering the practical hardship caused by the freezing of bank accounts, the Court found it appropriate to direct the appellate authority to dispose of the pending appeals expeditiously and on merits.

Conclusion: The writ petitions were not entertained on merits and stood dismissed, while the appellate authority was directed to decide the pending statutory appeals within one month.

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