Local body liable for service tax on property rentals, bank account attached for non-payment. Court orders tax clearance, relief options. The local body was held liable to pay service tax for renting immovable properties, leading to an order of attachment on the petitioner's bank account due ...
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Local body liable for service tax on property rentals, bank account attached for non-payment. Court orders tax clearance, relief options.
The local body was held liable to pay service tax for renting immovable properties, leading to an order of attachment on the petitioner's bank account due to non-payment. The court directed the petitioner to clear the service tax liability and interest, allowing monthly payments and relief on penalties. The petitioner was advised to address the adjudicating authority for further relief and challenge the assessment order if needed. The writ petition was dismissed without costs, emphasizing the need to follow the proper channels for relief and resolution.
Issues: 1. Liability of a local body to pay service tax for renting immovable properties. 2. Impugned order of attachment leading to freezing of petitioner's bank account. 3. Relief sought by the petitioner regarding penalty and service tax liability.
Analysis: 1. The petitioner, a local body, was found liable to pay service tax for renting immovable properties. Multiple assessment orders were passed against the petitioner, and due to non-payment, an order of attachment was issued, resulting in the freezing of the petitioner's bank account.
2. The adjudicating authority stated that the petitioner owed a total of &8377;24,44,383 towards service tax liability, interest, and penalty. While relief could be granted concerning the penalty, the petitioner was directed to clear the service tax liability along with interest. The court emphasized that if the primary orders were not challenged, interference with the recovery action was not possible, and the petitioner should seek relief from the adjudicating authority.
3. The petitioner proposed to pay &8377;1,00,000 per month to clear the liabilities. The court allowed the petitioner to make this request to the adjudicating authority, which would decide on the matter. The petitioner was also given the option to challenge the primary assessment order, with assurance of relief regarding the penalty portion.
4. Ultimately, the writ petition was dismissed, with no costs imposed. The petitioner was advised to address the adjudicating authority for relief and challenge the primary assessment order if necessary. The judgment concluded by closing the connected miscellaneous petitions.
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