M/s. Vathika International Travels vs Assistant Commissioner of Central Excise ST and EOU Division and Others

Ram Mohan Reddy, J.—Petitioner preferred an appeal along with an application for stay calling in question the order of the Adjudicating authority under the Finance Act, 1994 which is said to be pending before the Customs, Excise and Service Tax Appellate Tribunal, for short ''CESTAT'', without an order on the interim application. In the meanwhile, petitioner when served with a notice of demand for payment of service tax, petitioner having failed to obtain an interim order of stay and having not made the payment of tax demand, the respondent-authority is said to have attached and recovered Rs. 29,53,000/- from the petitioner''s Bank account. Hence this petition. Learned Counsel for the petitioner files an affidavit of Mrs. C. Vathika Kamath, Proprietrix of the petitioner-Travel agency inter alia stating that she is willing to permit the respondent to retain 50% of Rs. 29,53,000/ as a per-condition for filing the appeal before CESTAT provided the respondent effects refund of balance of 50% i.e. Rs. 14,76,500/-. That affidavit is taken on record.

Learned counsel for the respondents-revenue submits that that the respondents may have no objection for retaining 50% of the amount recovered from the petitioner''s Bank Account, nevertheless for the balance 50% petitioner would have to furnish some security. Recording the submission of the learned counsel and taking on record the affidavit, this petition is disposed of with a direction to the CESTAT to consider the stay application forthwith and pass orders as regards the balance of 50% of the tax demand and respondent is directed to refund Rs. 14,76,500/- within a week.