VIR RETAIL PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The Revenue has preferred applications for a direction to the writ petitioners-assessee to pay and tender service tax amount due by them in terms of the interim order dated October 14, 2011 in Retailers Association of India v. Union of India C.A. No. 8390 of 2011, of the apex court.

(2.) It is no doubt true that the interim order in M/s. Retailers Association of India, indicates that the appellant therein was directed to deposit 50 per cent of the arrears towards tax within six months in three equated instalments on or before November 1, 2011, January 1, 2012 and March 1, 2012 and for the balance 50 per cent to furnish a solvent surety to the satisfaction of the jurisdictional Commissioner as also file affidavit before the apex court within four weeks therefrom, undertaking to pay the balance arrears of service tax stayed in terms of the order and that the successful party in the appeal shall be entitled to interest on the amount stayed by the court at such rate as may be directed during the final disposal of the appeal. However, by another order of even date in Home Solutions Retail India Ltd., the apex court did observe that no coercive steps should be taken against the appellant therein for recovery of arrears of service tax due on or before September 30, 2011.

(3.) There is considerable force in the submission of Sri. K.P. Kumar, learned senior counsel for some of the petitioners, that the apex court having observed no coercive steps should be taken against the appellant for recovery of arrears of service tax due on or before September 30, 2011, the same would enure to the benefit of the petitioners and therefore, in effect, the respondent-Revenue must also desist from taking coercive steps in recovering arrears of tax pre-September 30, 2011 from the petitioners, while taxes post-September 30, 2011, are liable to be paid.