- 1 - W.P.Nos /2012

Transcription

1 - 1 - IN THE HIGH COURT OF KARNATAKA AT BANGALORE BETWEEN: DATED THIS THE 11 TH DAY OF OCTOBER 2012 BEFORE THE HON BLE MR. JUSTICE H.G.RAMESH Writ Petition Nos /2012 (T-RES) 1. MINDLOGICX INFOTECH LTD. A COMPANY INCORPORATED UNDER COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NO.10/1-B, GRAPHITE INDIA ROAD HOODI CIRCLE, NEAR WHITEFIELD BANGALORE REPRESENTED BY ITS ASSOCIATE VICE PRESIDENT- OPERATIONS MR. P.S.SRIJITH 2. MINDLOGICX INFRATEC LTD. A COMPANY INCORPORATED UNDER COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NO.10/1-B, GRAPHITE INDIA ROAD HOODI CIRCLE, NEAR WHITEFIELD BANGALORE REPRESENTED BY ITS ASSOCIATE VICE PRESIDENT- OPERATIONS MR. P.S.SRIJITH PETITIONERS (BY SRI S.S.NAGANAND, SENIOR ADVOCATE FOR M/S. JUST LAW, ADVOCATES) AND: 1. UNION OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE GOVERNMENT OF INDIA NORTH BLOCK, NEW DELHI THROUGH THE SECRETARY

2 COMMISSIONER OF SERVICE TAX OFFICE OF THE COMMISSIONER OF SERVICE TAX NO.16/1, S.P. COMPLEX LALBAGH ROAD, BANGALORE JOINT COMMISSIONER SERVICE TAX ANTI EVASION WING LALBAGH ROAD BANGALORE THE SUPERINTENDENT (AE) ANTI EVASION SERVICE TAX COMMISSARIATE BANGALORE RESPONDENTS (BY SRI N R BHASKAR, CGSC) THESE WRIT PETITIONS ARE FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH COMMUNICATION DATED , ISSUED BY R2 VIDE ANN-H AND ETC. THESE WRIT PETITIONS COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: O R D E R H.G.RAMESH, J. (Oral): Sri S.S.Naganand, learned Senior Counsel and Sri. S.Sriranga, learned counsel appearing for the petitioners, submit that the petitioners will pay the admitted service tax due before in seven instalments. To this effect, an affidavit dated

3 of the Associate Vice President-Operations of the two petitioner Companies is filed in Court today. The said affidavit/undertaking reads as follows: I, P.S.Srijith S/o Late Sri P.G.Siddharthan aged about 37 years residing at 202 Ten Bar Two Apartments, 10/2 Berlie Street, Shantinagar Post, Langford Town, Bangalore , do hereby solemnly affirm and state as under:- 1. I am the Associate Vice President Operations of the Petitioner Company, I know the facts of the case and I am able to depose to the matters pertaining thereto, I am also authorised to swear to this affidavit on behalf of the Petitioners. 2. The Petitioners hereby undertake to pay the admitted service tax due to the tune of Rs. 2,89,539.30/- (from the Petitioner No.1) and Rs.3,25,12,911.50/- (from the Petitioner No.2) in terms of the claims made according to the self assessment to the Respondent No 2, which includes interest upto along

4 - 4 - with interest till date of payment in the following manner. However, if the department were to unearth any further liability due to the department which has not been credited to its account, the same shall be paid immediately without any further notice. the Petitioners further undertake to submit/ furnish all the invoices under which they claim admissibility of service tax credit to the Commissioner of Service Tax, Bangalore with in a period of 4 weeks which claim shall be determined within a period of one month thereafter. The Petitioner shall be entitled to admissible CENVAT credit after verification of invoices so furnished. 3. The Petitioners individually and severally submit that the Petitioner No.1 has already made a payment to the Department of Rs.50 lakhs in two installments of Rs.25 Lakhs each vide Challan sequence nos. 1 & 2 on and respectively. In addition to the same, the Department has

5 - 5 - recovered Rs /- from the bank account of the 1 st Petitioner and Rs. 4,21,737.50/- from the bank account of the 2 nd Petitioner, which the Department had attached. All the payments already made by the Petitioner and the amounts recovered by the Department as on date and also the future payments made will be first set off against the liabilities of Petitioner No 2 and later against the liabilities of Petitioner No The Petitioners undertake to pay the balance in monthly installments and have today handed over post dated cheques (seven in number drawn on ICICI Bank Ltd) the details of which are as given below: AMOUNT Cheque No Date Rs 28,02,450.80/-; Rs 50 lakhs; Rs 50 lakhs; Rs 50 lakhs; Rs 50 lakhs; Rs 50 lakhs; Rs 50 lakhs;

6 The Petitioners have handed over post dated cheques for the above installments to the Joint Commissioner of Service Tax present before this Hon ble Court and assures that the cheques will be honored on presentation on the due dates. Default in honoring any of the cheques above will render the Petitioners liable for the entire amounts due & shall be paid forth with without any further notice. 6. The above undertaking is independent of the regular assessment proceeding to be taken up and concluded by the Assessing authority. It is prayed that the present undertaking maybe placed on record and suitable orders passed in the interests of justice and equity. Sri N.R.Bhaskar, learned Central Government Standing Counsel for the respondents submits that in view of the aforesaid affidavit, the Commissioner of Service Tax will withdraw all the orders passed against

7 - 7 - the petitioners under Section 87 of the Finance Act, 1994 within a week from today and the withdrawal will also be communicated to the petitioners. However, he submits that this withdrawal shall be without prejudice to the power of the respondents to recover the service tax due from the petitioners in accordance with law. 2. Learned Counsel on both sides submit that the writ petitions may be disposed of by placing the above affidavit and the submissions made on both sides, on record. 3. In view of the above, the above affidavit and the submissions referred to above are placed on record. Sri. Sriranga, learned counsel appearing for the petitioners fairly submits that the petitioners will pay costs of Rs.25,000/- to the Commissioner of Service

8 - 8 - Tax within four weeks from today. The costs shall be paid accordingly. Petitions disposed of. hkh. Sd/- JUDGE