SHRI KRISHNA CHAITANYA ENTERPRISES Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition under Article 226 of the Constitution of India, the petitioner has challenged the action of the respondents freezing the bank accounts of the petitioner maintained with United Bank of India, Dahisar (W) Branch, Mumbai as per the particulars given in prayer clause (a) of the petition. The impugned action has been taken by a letter dated 4 March 2013 addressed by the Deputy Commissioner of Service Tax, Mumbai -II to the Branch Manager of United Bank of India, Dahisar (W), Branch, Mumbai. The letter mentions that the petitioner has defaulted in payment of Service Tax liability to the tune of Rs. 88.10 lakhs and that the amount of Service Tax has been collected by the petitioner from its clients but not deposited with the Government.

(2.) ACCORDING to the petitioner, the petitioner has already paid the Service Tax of Rs. 1,32,50,497/ - in two parts (Rs. 1,23,68,420 + Rs. 8,82,077).

(3.) ACCORDING to Mr. Jetly, the learned counsel for the revenue, the total Service Tax liability of the petitioner is Rs. 1,87,34,068 (Rs. 1,23,68,420 + Rs. 63,65,648). It is, therefore, submitted that the petitioner still owes the revenue the differential amount of Rs. 54,83,571/ - and, therefore, the department is justified in freezing the petitioner's bank account.