The petitioner is functioning as a recovery agent for various institutions. It is stated that the liability to satisfy service tax was being honoured till 2006-07. By virtue of various adverse circumstances, including the fact that the service recipients did not choose to honour their commitments in replenishing payment of service tax, there occurred default on the part of the petitioner and hence the petitioner could not effect payment of 'service tax' for the year 2007-08 onwards. This made the respondents to proceed with further steps leading to Ext.P1 series notices. Apprehending further coercive steps by way of arrest, the petitioner has approached this Court seeking for immediate interference.
2. Heard the learned standing counsel appearing for the respondents as well.
3. The learned counsel for the petitioner submits that, earnest efforts are being taken on war-footing to liquidate the liability and the prayer is only to grant some breathing time. It is stated that the petitioner has satisfied a sum of Rs.30 lakhs on WP(c). No.27879 of 2014 2 31.03.2014 and a further sum of Rs.80 lakhs in October, 2014, thus effecting a total payment of more than 1.18 crores. By virtue of the remittances as above, the entire principal amount stands cleared and the balance could only be with regard to 'interest' and 'penalty' payable. Here again, the petitioner submits that, he is ready to satisfy the same and the prayer is only to grant some instalments.
4. The learned standing counsel appearing for the respondents submits that, the course and proceedings pursued by the respondents are perfectly within the four walls of law and hence not assailable under any circumstances. It is stated that 'interest' payable by the petitioner will come around Rs.70 lakhs and that the 'penalty' payable is being worked out. The learned standing counsel points out that the petitioner had actually collected the 'service tax' from the recipients and as such, there is no justification for having retained the said amount without being credited to the account of revenue. It is also stated that, in spite of notice/summons, the petitioner has not co-operated by furnishing the details to finalise the proceedings.
5. After hearing both the sides, the petitioner is directed WP(c). No.27879 of 2014 3 to produce all the relevant documents before the respondents within 'two weeks' and the respondents are directed to finalise the quantum in respect of t0he interest and penalty payable, which shall be let known to the petitioner immediately, at any rate, on or before 30th of November, 2014. The liability as aforesaid shall be cleared by the petitioner by way of 'three' equal monthly instalments, the first of which shall be effected on or before the 30th of December, 2014 followed by similar instalments, to be effected on or before the last working day of the succeeding months. Subject to this, the coercive proceedings shall be kept in abeyance, for the time being. It is made clear that, if any single default is committed with regard to satisfaction of the 'liability' as above, it will be open for the respondents to proceed with further steps for realization of the entire amount in lump, by pursuing such steps from the sate where it stands now.
The writ petition is disposed of.
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P.R. RAMACHANDRA MENON, JUDGE.
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