BHAVYA CREATORS PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Present writ petition has been filed challenging the Notice dtd. 24th July, 2019 issued by the Respondent No 2. Petitioner also seeks directions to the Respondents to de freeze the Bank Account bearing no 30054061864 with State Bank of India.

(2.) Learned counsel for the Petitioner states that the Respondent No. 2 has issued the impugned notice under section 87(b)(i) of the Finance Act,1994 directing the Respondent No. 3 to freeze the Petitioner's bank account. He submits that the Notice has been issued without jurisdiction and in violation of the Circular dtd. 16th September 2014 issued by the Respondent No. 1, which categorically provides that "No coercive measures for the recovery of balance amount i.e. the amount in excess of 7.5% or 10% deposited in terms of Sec. 35F of Central Excise Act, 1944 or Sec. 129E of Customs Act' 1962 shall be taken during the pendency of appeal"

(3.) Learned Counsel for the Petitioner states that the Petitioner has already complied with the mandatory requirement of deposit of 7.5% of the total alleged demand before filing of the appeal on 13th November 2019. He submits that it is settled law that once a party deposits the mandatory amount of 7.5%, there is no reason for recovery of any further amount from the Petitioner during the pendency of the appeal. He relies on the decision of the Customs, Central Excise and Service Tax Tribunal in Kala Mines and Minerals Vs Commissioner of Customs, Central Excise and Service Tax Goa; Appeal No. ST/85150/2015-MUM