Case Law Details
Carmel Builders And Fibrotech Industries Pvt. Ltd Vs Commissioner of Central Excise (Kerala High Court)
Introduction: In the case of Carmel Builders and Fibrotech Industries Pvt. Ltd vs. Commissioner of Central Excise, the Kerala High Court addressed the issue of attaching bank accounts during service tax appeals. The petitioner had filed a writ petition seeking the quashing of orders and the cessation of revenue recovery proceedings against them, while also requesting that no recovery proceedings be initiated during pending appeals.
Detailed Analysis: The petitioner had appealed to the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) against orders from the first respondent, which upheld a service tax demand. The petitioner had made a pre-deposit as part of the appeals process. As a result of the pre-deposit and the numbering of the appeals, the Kerala High Court ruled that the attachment or freezing of the petitioner’s bank accounts was no longer necessary. The court also ordered the petitioner to provide a list of their properties as requested in Ext.P17 notice. During the pendency of the appeals before CESTAT, the court directed that no coercive measures should be taken against the petitioner.
Conclusion: The Kerala High Court’s decision in the case of Carmel Builders and Fibrotech Industries Pvt. Ltd vs. Commissioner of Central Excise clarifies that attachment or freezing of bank accounts is not required after pre-deposit and numbering of service tax appeals. This ruling provides relief to the petitioner and ensures that no coercive measures are taken during the pending appeals. It reaffirms the legal process for resolving service tax disputes and protecting the rights of the concerned parties.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The present writ petition has been filed with the following prayers:
“1. Issue a writ of certiorari or other appropriate writ, order or direction quashing Ext P8 order of the 3rd respondent and Ext P17 order of the 5th respondent and all revenue recovery proceedings further thereto against the petitioner.
2. Issue a writ of mandamus or other appropriate writ, order or direction to the respondents to cease and desist from any and all revenue recovery proceedings pending appeals preferred by the petitioner.
3. Declare that no revenue recovery proceedings shall be initiated against the assessee pending appeals before the appropriate appellate authorities.
4. Grant such other reliefs which this Hon’ble Court may deem fit in the circumstance of the case.”
2. Petitioner has preferred appeals before the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) against the orders of the first respondent, Exts.P4 and P5, upholding the demand made by the authorities for non-payment of service tax. The petitioner has made pre-deposit.
3. Since petitioner has made the pre-deposit, as also the appeals have been numbered, attachment/freezing of the bank accounts of the petitioner is no longer required, and therefore, the same are hereby lifted/de-frozen. However, the petitioner will provide list of its properties as demanded vide Ext.P17 notice. It is also directed that during the pendency of the appeals before the CESTAT, no coercive measure shall be taken against the petitioner.
The present writ petition is disposed of. Pending interlocutory application, if any, in the writ petition stands dismissed.
