2017 (6) TMI 59 - HC - Service Tax

Court directs Petitioner to submit Rs. 10 lakhs, Show Cause Notice issued, timely adjudication emphasized.

The court directed the Petitioner to submit a demand draft of Rs. 10 lakhs to the Commissioner Service Tax, Delhi-I pending adjudication proceedings, ... Attachment of Bank account - Held that: - since the Petitioner admitted to the liability by letter dated 23rd January 2017, no purpose would be served in going through the exercise of issuing an SCN following by an adjudication - it is directed that within six weeks from today, an SCN will be issued to the Petitioner. The Petitioner to file its reply thereto within the time - petition disposed off. Issues:1. Demand draft submission and acknowledgment.2. Lifting of bank account attachment.3. Show Cause Notice issuance and liability determination.Demand Draft Submission and Acknowledgment:The Petitioner's counsel presented a demand draft of Rs. 10 lakhs in favor of the Commissioner Service Tax, Delhi-I. The court directed the draft to be handed over to the Commissioner under acknowledgment, pending the final outcome of adjudication proceedings. Despite the draft being prepared by a third party, it was considered an on-account payment by the Petitioner subject to adjustment.Lifting of Bank Account Attachment:Due to the payment made via the demand draft, the court ordered the immediate lifting of the attachment on the Petitioner's bank accounts, which was previously ordered by the Respondent.Show Cause Notice Issuance and Liability Determination:The Petitioner's counsel highlighted the absence of a Show Cause Notice (SCN) issued to the Petitioner till date. The Respondent argued that since the Petitioner acknowledged liability in a letter, issuing an SCN would be redundant. However, the Petitioner insisted on a proper determination of liability as per the law, stating that the acknowledgment was made solely to negotiate installment payments. Consequently, the court directed the issuance of an SCN to the Petitioner within six weeks, with a mandate for both parties to avoid unnecessary adjournments. The adjudication proceedings were required to be concluded within six months of the SCN issuance.The petition and application were disposed of with no further orders necessary, and the judgment was to be delivered through Dasti.