Sainik Welfare Org - INDIA vs. Nehra Infrastructures & Ors

Facts

The petitioner, Sainik Welfare Organization India, and respondents Nehra Infrastructures & Ors. were involved in a dispute concerning service tax liability. The petitioner had paid approximately Rs. 30 Lakhs towards a total service tax liability of Rs. 85,77,146/-. The petitioner had also deposited five undated cheques, each for Rs. 13,97,137/-, totaling Rs. 69,85,685/-, with the Court. The Court directed the Registrar General to obtain proof of service tax deposit from the respondents and hand over the cheques to them, while simultaneously returning keys of flats to the petitioner. The respondents submitted challans and computer-generated receipts for various tax deposits, claiming to have discharged their service tax liability amounting to Rs. 87,27,840/-. The petitioner challenged the authenticity of these receipts, requesting verification. The concerned departments subsequently confirmed the receipt of the amounts.

Held

The Court held that the objection raised by the petitioner regarding the authenticity of the service tax deposit reports lacked force. The concerned departments, through their reports dated October 22, 2018, October 25, 2018, and October 26, 2018, had confirmed the receipt of the amounts deposited by the respondent. Specifically, a letter dated October 5, 2018, from the Assistant Commissioner, CGST, South, Delhi, detailed the service tax amounts deposited by M/s Nehra Infrastructure, totaling Rs. 87,27,840/-, which included amounts from CENVAT CREDIT, NSDL Challan No. 50393 dated May 10, 2016, and NSDL Challan No. 00547 dated December 7, 2015. The Court noted that its order dated August 17, 2018, had already dealt with the issues and stated that settlement agreements are final and binding. The Registrar General's role was considered ministerial, aimed at ensuring compliance. Therefore, the Registry was directed to release the keys deposited by the respondent to the petitioner and permit the respondent to encash the undated cheques.

Key Issues

1. Whether the service tax deposits made by the respondents, as evidenced by the submitted challans and receipts, are authentic and sufficient to discharge their liability of Rs. 85,77,146/- for the subject projects, as per the orders of this Court dated August 16, 2018, and September 19, 2018? Petitioner's contention: The petitioner argued that the reports filed by the departments were vague and did not conclusively relate to the purported tax deposits made by the respondent. They contended that the undated cheques should not be encashed until clear reports were received. Respondent's contention: The respondents asserted that they had no other service tax liabilities related to the dispute and that the deposited amounts totaling Rs. 87,27,840/- discharged their liability. They requested permission to encash the undated cheques, with the petitioner filling in the dates.