2014 (4) TMI 882

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Dave, Adv. For the Respondent : Mr. Darshan M. Parikh, Adv. ORAL ORDER Akil Kureshi, J. - Heard learned counsel for the parties for final disposal of the petition. Petitioners have challenged the action of the respondents in seeking recovery of service tax dues of the petitioners on the ground that show cause notice proceedings for recovery are pending and the petitioners have seve....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ollected from the customers, but not deposited with the department. In some other cases, service tax was not received though required to be collected. Be that as it may, on the basis of the investigation carried out, the competent authority issued a show cause notice dated 23.10.2013, calling upon the petitioners why service tax of Rs.1,86,94,281 be not recovered with interest and penalties under ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....re full adjudication of the show cause notice. On the other hand, case of the department put forth before us in the form of affidavit in reply and through the contentions of the cousnel is that the petitioners had virtually admitted the service tax liability to the tune of Rs.1.50 crores. Service tax though collected form their clients was not deposited with the department. The department was, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....aving been provided in the special economic zone areas, service tax is not applicable. We are not judging the validity of such contentions. All that we are suggesting is that when the show cause notice was issued by the department to which the petitioners have raised their objections, recoveries without adjudication of such disputed taxes was simply not permissible in law. We notice that section 7....