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PM-STIAC discusses accelerating Industry-Academia Partnership for Research and InnovationIndia, Singapore hold dialogue over cyber policy44 bids received under 10th Round of Commercial Coal Mine AuctionsCops arrest former Dy PM of Nepal in cooperative fraud casePuri highlights India's Petrochemical potential at India Chem 2024UN reports record high cocaine production in ColombiaMinister unveils 'Aviation Park' showcasing India's Aviation HeritageED finds PFI wanted to start Islamic movement in IndiaBlocking Credit - Rule 86ASEBI says investors can use 3-in-1 accounts to apply online for securitiesI-T- Penalty u/s 271(1)(b) need not be imposed when assessee moved an adjournment application & later complied with notice u/s 142(1): ITAT4 Kanwariyas killed as vehicle runs over them in Banka, BiharI-T- Accounting principles do not prescribe maintaining of a day-to-day stock register, and the books of accounts cannot be rejected on this basis alone: ITATUN food looted and diverted to army in EthiopiaCus - Alleged breach of conditions for operating public bonded warehouse; CESTAT rightly rejected allegations, having found no evidence of any such breach: HCUS budget deficit surges beyond USD 1.8 trillionST - Onus for proving admissibility of Cenvat Credit rests with service provider under Rule 9(6) of the Cenvat Credit Rules, 2004: CESTATIf China goes into Taiwan, Trump promises to impose additional tariffsRussians love Indian films; Putin lauds BollywoodCus - Classification of goods is to be determined in accordance with Customs Tariff Act & General Interpretative Rules; Country-of-Origin Certificate may offer some guidance, but cannot solely dictate classification: CESTATCus - Benefit of such Country-of-Origin certificates cannot be denied if all relevant conditions are met under the applicable Customs Tariff rules: CESTATCuban power grid collapses; Country plunges into darknessCus - As per trite law, merely claiming a classification or exemption does not constitute mis-declaration or suppression - any misclassification does not equate to willful intent to evade duty: CESTATKarnataka mulling over 2% fee on aggregator platforms to bankroll gig worker welfare fundCus - Extended limitation cannot be invoked in case of assessee who is a regular importer with a consistent classification approach: CESTAT
 
ST - Freezing of bank accounts - In invoices raised, price charged included component of ST which was recovered - it is not that there is an uncrystallised or unascertained dues - a/c released temporarily for making deposit of Rs 5 Cr: HC

By TIOL News Service:

MUMBAI, MAY 11, 2016: THE petitioner states that Service Tax department have initiated coercive action to recover the amount of tax which is yet to be ascertained. In other words for unascertained and uncrystallized dues, bank accounts of the petitioner have been frozen and attached and,therefore, the Service Tax Commissioner should be directed to release the bank accounts, it is pleaded.

The petitioner, in their letter dated 31.03.2016,admitted the service tax liability of Rs.12.77crores for the period 2010-11 till 2014-15. Adding up the dues till date would make the petitioner liable to pay Rs.18 crores plus interest.

The High Court observed that the petitioner had rendered services to various customers/clients, and the Invoices and bills have been raised on them and the price charged includes component of service tax; thus, service tax had been recovered from the clients/customers, who are recipients of the services, but there is default in depositing it in the Government treasury.

It was also noted that prima facie the letters of the petitioner on the subject of payment of Service Tax in Government Treasury do not indicate that there is any uncrystallized or unascertained dues, but known to the petitioner and non remittance thereof in Government Treasury would invite interest and penalty.

The High Court after considering the submissions ordered thus -

++ The petitioner to deposit sum of Rs.5crores with the respondents on or before 10th June, 2016 and produce proof of the same before the Registrar (O.S.), of such deposit on that day. Time to make payment shall not be extended and no application will be entertained even during vacation by this Court;

++ To enable petitioner to pay an amount of Rs.5crores, following three bank accounts of the petitioner shall be released temporarily forthwith.

++ Any default in compliance with the order shall result in the writ petition being dismissed without any further reference to this Court and these accounts can be reattached and refrozen.

(See 2016-TIOL-917-HC-MUM-ST)


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