TaxTMI 
TaxTMI 
2015 (11) TMI 1147
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....ch have been raised, we grant Rule on the Writ Petition. Respondents waive service. With the consent of the Advocate of both sides, we have heard the Writ Petition finally. The Petitioner is aggrieved and dissatisfied with the order passed by the Tribunal on 7th November, 2014, directing the Petitioner to deposit a sum of Rs. 77,50,000/- and which is to be either deposited or paid on or before 7th January, 2015. This is an order on the application for stay. That application is allowed partly and if the proof of this payment is produced before the first Appellate Authority, then, further sums under the order of assessment shall not be recovered from the Petitioner. The Petitioner is claiming to be a 100% subsidiary of M/s. Nelco Lim....
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.... The Petitioner claims that the hardware equipments such as routers, modems, etc. are under the scope of Nelco Ltd. and not in the scope of work of the Petitioner. The agreement with the customers and the invoices have been produced to submit that what is essentially provided is a service and the charge is levied for the same. The Service Tax is paid under the Central Tax regime, namely the Finance Act, 1994 for providing the services. Further, Value Added Tax (VAT) is paid on the hardware equipments supplied to the customers, but that is by M/s. Nelco Limited. The claim is that the Petitioner was directed to subject itself to assessment before the Assessing Officer (Deputy Commissioner) and he passed an assessment order. He would hold t....
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....ude a mortgage, hypothecation, charge or pledge and the words "sell" "buy" and "purchase" are the words which have to be interpreted in accordance with this meaning. The Explanation to this definition would further denote as to how either the transfer of property in any goods, otherwise than in pursuance of a contract, for cash, deferred payment or other valuable consideration would fall within the purview of this section or definition or the transfer of property in goods involved in the execution of a works contract. The concept and in the Explanation as well is worded in tune with the language of Article 366 (29A) of the Constitution of India. Therefore, the supply by way of or as part of any service or any other manner whatsoever of good....
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....nly decided and that is how the security is determined, but in the form of cash deposit. That would mean that in every successive assessment, if the Petitioner is aggrieved by the assessment order, the first appellate authority and at the first instance itself would direct and as a precondition for stay, the deposit or payment of a substantial sum. Mr. Sridharan submits that while it is true that there cannot be unconditional stay of recovery of tax, in the given facts and circumstances, the direction has a negative impact and effect. The Petitioner is already suffering losses in its business and for all these reasons, he would submit that the impugned order be set aside. Mr. Sharma, the learned AGP appearing for the State would support ....
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....by, in a single service provider agreement or transaction, there could be an element of transfer of goods, but that will have to be discerned and identified. That is how the Hon'ble Supreme Court approached the matter in the case of Bharat Sanchar Nigam Limited vs. Union of India reported in (2006) 145 STC 91. In such circumstances, we would expect the authorities under the Act to be reasonable and not impose conditions which would make it impossible for the Appellant to prosecute and pursue its right of Appeal guaranteed by the MVAT Act. In such circumstances, imposition of a condition of pre-deposit would denote as to how the authorities have prima facie prejudged the issue raised for their consideration. If there is an arguable point....