Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE DR. JUSTICE KAUSER EDAPPAGATH TUESDAY, THE 5TH DAY OF DECEMBER 2023 / 14TH AGRAHAYANA, 1945 WA NO. 2078 OF 2023 AGAINST THE JUDGMENT WP(C) 39704/2023 OF HIGH COURT OF KERALA APPELLANT/PETITIONER:
PATHANAMTHITTA MUNICIPALITY PATHANAMTHITTA (REPRESENTED BY THE MUNICIPAL SECRETARY, SRI. SUDHEER RAJ J S), PIN - 689545 BY ADVS.
K.N.SREEKUMARAN P.J.ANILKUMAR (A-1768) N.SANTHOSHKUMAR RESPONDENT/RESPONDENT:
1 SUPERINTENDENT CENTRAL GST & CENTRAL EXCISE, PATHANAMTHITTA DIVISION , PIN - 689545 2 ASSISTANT COMMISSIONER CENTRAL GST AND CENTRAL EXCISE, ST PETER'S JN, RING ROAD, PATHANAMTHITTA DIVISION.
PATHANAMTHITTA, PIN - 689545 3 CHIEF COMMISSIONER CENTRAL GST & SERVICE TAX, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, ERNAKULAM., PIN - 682018
WA No.2078/2023 -:2:- 4 SENIOR MANAGER INDIAN OVERSEAS BANK, PATHANAMTHITTA BRANCH., PIN - 689545 5 SENIOR MANAGER AXIS BANK, PATHANAMTHITTA BRANCH, PIN - 689545 BY ADV SRI.MADHU RADHAKRISHNAN R5 SRI.SREELAL N.WARRIER R1 TO R3 SRI.SUNIL SANKAR R4 THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 05.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WA No.2078/2023 -:3:- J U D G M E N T Dr. Kauser Edappagath, J.
The appellant, Pathanamthitta Municipality, preferred the writ petition aggrieved by the action of the respondents in realising the service tax arrears under the Finance Act, 1994 in terms of Section 87(b) by issuing a garnishee order.
2.
The appellant did not dispute the liability to pay the service tax or its quantum. The appellant only sought instalment facilities to clear the arrears in terms of Ext.P4 circular. The learned Single Judge disposed of the writ petition granting the appellant five instalments. It was specified that the 4th respondent can deduct `15,00,000/- from the amount lying in the bank account of the appellant, and the balance shall be paid in five equal instalments. Aggrieved by the said judgment, the appellant is before us.
3.
We have heard Sri.K.N.Sreekumaran, the learned
WA No.2078/2023 -:4:- standing counsel for the appellant, Sri.Sreelal N.Warrier, the learned standing counsel for respondents 1 to 3, Sri.Sunil Sankar, the learned standing counsel for the 4th respondent and Sri.Madhu Radhakrishnan, the learned standing counsel for the 5th respondent.
4.
The learned standing counsel for the appellant submitted that Ext.P4 circular issued by the Central Board of Excise and Customs, Ministry of Finance, New Delhi, provides for granting a maximum of 36 instalments for clearing the arrears of service tax pending under the garnishee proceedings and in such circumstances, the learned Single Judge ought not to have limited the instalment facilities for clearing the balance arrears of service tax to five instalments. The 5th respondent had already withdrawn an amount of `1,30,64,178/- from the bank account of the appellant held with the said bank and paid to the 2nd respondent. The balance outstanding under the garnshiee order is `68,01,439/-. The learned standing counsel for the appellant submitted that the appellant does not have enough funds with them and they cannot mobilise the balance amount in five
WA No.2078/2023 -:5:- instalments as directed. The learned standing counsel for respondents 1 to 3 formally objected to the grant of more instalments albeit conceding that Ext.P4 circular allowed for the grant of more instalments. Considering the rival submissions, we are of the view that the appellant can be granted twelve instalments as against five instalments granted by the learned Single Judge to discharge the outstanding service tax and interest. The first instalment of `15,00,000/- can be deducted by the 4th respondent from the amount lying in the appellant's bank account as directed by the learned Single Judge. The appellant shall pay the balance amount in twelve equal instalments starting from 1st February, 2024.
The writ appeal is disposed of as above.
Sd/- DR. A.K.JAYASANKARAN NAMBIAR JUDGE
Sd/- DR. KAUSER EDAPPAGATH JUDGE Rp