Service Tax Dues - Attachment of Property - Notice to Wrong Person
WITH arrears collection and attachment being popular activities of the CE Department now, indiscriminate notices are being issued to the first available victim. In a case before the Madras High Court, a former actress challenged the attachment of a flat by the Service Tax department. Her plea is that she is not the owner of the flat as it was transferred to her minor daughter who after attaining majority had sold it to a third party.
But the High Court could not give her any relief, as she was not the owner of the property.
The High Court observed, "It is not open to the petitioner to challenge the notice of attachment of immovable property as she is not the owner of the property as per her claim. If the notice has been wrongly issued to the petitioner, it is open to the petitioner to give a representation to the respondent authority setting out the details of the transaction that has taken place as above. If any action is proposed to be taken as against the petitioner, thereafter the petitioner can defend such action as per law. At this stage, no relief as sought for can be granted. The petitioner, however, is directed to give a reply to the respondent authority explaining the facts as above so as to enable the department to take appropriate action as per law. It is made clear that this Court has not expressed any opinion on the merits of the case.”