Zest Buildtek Promotors Vs Deputy Commissioner of GST & Central Excise (Madras High Court)
Issuance of attachment order under provisions of Customs Act for recovery of Service Tax dues is not valid
In a landmark decision, the Hon’ble Madras High Court in Zest Buildtek Promotors v. Deputy Commissioner of GST and Central Excise [W.P. No. 12349 of 2023 dated February 19, 2024], quashed an attachment order issued under the Customs Act for the recovery of Service Tax dues. The Hon’ble Madras High Court quashed the attachment order passed against the Assessee, thereby holding that, the issuance of attachment order under the provisions of the Customs Act for recovery of Service Tax dues is not valid as the same is recoverable under Section 142(8)(a) of the Central Goods and Services Act, 2017 (“the CGST Act”) read with Section 174 of the CGST Act. Also, the Hon’ble High Court provided an opportunity to file statutory appeal irrespective of limitation period due to the non-availability of the physical order. This case clarifies the applicability of recovery provisions under the Central Goods and Services Act, 2017 (“CGST Act”), emphasizing the inapplicability of the Customs Act for Service Tax recoveries.
Facts:
Zest Buildtek Promotors (“the Petitioner”), filed a writ petition against the attachment order dated February 16, 2023 (“the Impugned order”) passed by the Revenue department (“the Respondents”) wherein the Petitioner has prayed for setting aside of the Impugned Order passed for recovery of tax under the provisions of Customs Act for recovery of service tax dues and directing the Respondent to provide certified copy of the Impugned Order.
