The Kerala High Court observed that there is no requirement of attachment of bank account on deposit of pre-deposit, and after numbering of service tax appeals.
The Petitioner, Carmel Builders and Fibrotech Industries, has preferred appeals before the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) against the orders of the first respondent, upholding the demand made by the authorities for non-payment of service tax. The petitioner has made pre-deposit.
After enactment of the Finance Act (No.2), 2014 with effect from 06.08.2014, Section 35F of the Central Excise Act, 1944 and Section 129E of the Customs Act, 1962 have been substituted with new sections to provide for mandatory pre-deposit as a percentage of the duty demanded where duty demanded is in dispute or where duty demanded and penalty levied are in dispute.
Where penalty alone is in dispute, the pre-deposit shall be calculated on the penalty imposed. The amended provisions apply to the appeals filed before Commissioner (Appeals) or Tribunal after 6.8. 2014. Sections 35F of the Central Excise Act, 1944 and Section 129E of the Customs Act, 1962 contain specific saving clause to provide that all pending appeals/stay applications filed till the enactment of the Finance Bill, 2014 shall be governed by the erstwhile provisions.
A Single Judge Bench of Justice Dinesh Kumar Singh noted that “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 notice. It is also directed that during the pendency of the appeals before the CESTAT, no coercive measure shall be taken against the petitioner.”
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