Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 28TH DAY OF NOVEMBER 2023/7TH AGRAHAYANA, 1945 WP(C) NO. 39704 OF 2023 PETITIONERS:
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 RESPONDENTS:
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 4 SENIOR MANAGER INDIAN OVERSEAS BANK, PATHANAMTHITTA BRANCH., PIN – 689545
W.P.(C.) No. 39704/2023 2 5 SENIOR MANAGER AXIS BANK, PATHANAMTHITTA BRANCH, PIN – 689545 R1 - R3 BY SRI. SREELAL N. WARRIER R4 BY SRI. SUNIL SANKAR,SC, INIDAN OVERSEAS BANK THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C.) No. 39704/2023 3 JUDGMENT The present writ petition is filed by the petitioner Municipality for a prayer to allow the petitioner to discharge the arrears of service tax and interest as levied in the assessment proceedings. According to the petitioner, recovery proceedings have been initiated against the petitioner by the second respondent through Ext.P1 garnishee order under Section 87(b) of the Finance Act, 1994 for realising a total amount of arrears of service tax to the tune of Rs 1,98,65,617/-.
In compliance with Ext.P1, the 5th respondent withdrew an amount of Rs. 1,30,64,178/- from the bank account of the petitioner and paid to the second respondent and the balance amount outstanding under the garnishee order is Rs. 68,01,439/-. The learned counsel for the petitioner submits that the petitioner is willing to discharge the said liability in installments. He also drawn attention of this Court to Ext.P4 Circular No. 996/3/2015-CX dated 28.02.2015 issued by the Central Board of Excise and Customs, Government of India. It is the said Circular that provides the power to the Commissioner for granting installments for payment of arrears of service tax and interest etc., upto a maximum of 24 monthly installments.
W.P.(C.) No. 39704/2023 4 2.
Concededly, the learned counsel for the respondent submits that this Court may grant installments to the petitioner to discharge the liability of service tax and interest. For achieving the aforesaid provision, the petitioner has moved Ext.P5 application before the third respondent for granting installments to pay the arrears of service tax and interest. However, no decision has been taken on the said application.
3.
Considering the stand of the learned counsel for the respondents and the petitioner's willingness to discharge the tax liability in installments, the present writ petition is disposed of permitting the petitioner to discharge the outstanding service tax and interest liability thereunder in five installments. The first installment of Rs. 15,00,000/- may be deducted by the fourth respondent from the amount lying in the bank account of the petitioner. The petitioner shall be entitled to operate its bank account on furnishing an undertaking before the Chief Commissioner that the petitioner will discharge the service tax and interest liability in five equal installments and the first installment of Rs. 15,00,000/- to be deducted by the fourth respondent itself and paid to the Service Tax
W.P.(C.) No. 39704/2023 5 Department. The petitioner on remittance of the first installment of Rs. 15,00,000/- shall be allowed to operate its bank account subject to the furnishing of the undertaking as mentioned above.
Sd/- DINESH KUMAR SINGH
JUDGE DCS/28.11.2023
W.P.(C.) No. 39704/2023 6 APPENDIX PETITIONER EXHIBITS EXHIBIT-P1 TRUE COPY OF THE REVENUE RECOVERY NOTICE NUMBER 17/2023 DATED 23.08.2023 ISSUED BY THE 2ND RESPONDENT TO THE 1ST RESPONDENT AND THE 4TH AND 5TH RESPONDENTS.
EXHIBIT-P2 TRUE COPY OF THE LETTER DATED 23.8.2023 ISSUED BY THE 1ST RESPONDENT TO THE 5TH RESPONDENT.
EXHIBIT-P3 TRUE COPY OF THE COMPLIANCE LETTER DATED 24.8.2023 ADDRESSED BY THE 5TH RESPONDENT TO THE PETITIONER.
EXHIBIT-P4 TRUE COPY OF THE CIRCULAR NO.996/3/2015- CX DATED 28.2.2015 ISSUED BY THE CENTRAL BOARD OF EXCISE AND CUSTOMS, UNION GOVERNMENT, MINISTRY OF FINANCE, NEW DELHI.
EXHIBIT-P5 TRUE COPY OF THE PETITION DATED 22.11.2023 FILED BY PETITIONER BEFORE THE 3RD RESPONDENT BEARING THE ACKNOWLEDGEMENT.
EXHIBIT-P6 TRUE COPY OF THE LETTER DATED 23.11.2023 FILED BY PETITIONER BEFORE THE 4TH RESPONDENT.
EXHIBIT-P7 TRUE COPY OF THE LETTER DATED 23.11.2023 FILED BY PETITIONER BEFORE THE 5TH RESPONDENT.