All's well that ends well - CESTAT discharges SCN proposing to initiate contempt proceedings against Dy Commr., Raigad
IN the present case, against a Service Tax demand of Rs.17,14,394/-, the applicant had filed an application for Stay/appeal before the CESTAT.
While this application was pending, the department issued a notice u/s 87 of the FA, 1994 to the service-recipient to deduct an amount of Rs.1 lakhs per month from the amount payable by the service-recipient to the applicant.
The applicant had moved the CESTAT against this notice and vide order dated 03.07.2012 (2012-TIOL-1689-CESTAT-MUM), the bench had directed that the notice be withdrawn.
However, nothing of this sort happened and, therefore, the applicant filed another Miscellaneous application praying for suitable direction to be issued to the department to withdraw the notice issued u/s 87 and further direct the department to return the excess amount recovered over and above Rs.17,14,394/- Service Tax payable by them.
When the matter was heard by the bench on 11th October, 2012, the Revenue representative submitted that as per letter dated 10.10.2012, the notice had been withdrawn. He also assured the Bench that the direction of the CESTAT would be complied within one month.
Taking cognizance of the aforesaid assurance given by the Revenue representative, the bench directed the 'concerned officer' to return the excess amount recovered within 30 days over and above the service tax amount of Rs.17,14,394/-, to the applicant.
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The compliance was to be reported on 19th November, 2012 but when the matter came up before the Bench, the Revenue representative sought an adjournment up to 10.12.2012.
Again when the case was called by the Bench on the 10th December, 2012, no written communication was received from the Revenue on the matter and so the Bench waited for the next day. On the 11th December, the Revenue representative submitted a letter dated 10.12.2012 of the Deputy Commissioner (Review), Central Excise, Raigad stating that they have not received a certified copy of the order (of the CESTAT) till date and a photocopy of the impugned CESTAT order was received by them as an enclosure to the letter dated 19.11.2012 from the Commissioner(AR) office; that the same is under process for acceptance by the Commissioner of Central Excise, Raigad and the order is to be implemented only after acceptance by the Commissioner of Central Excise, Raigad; that four weeks time would be required therefor.
Clearly upset with this behaviour, the Bench passed the following order () -
"3. While passing the order dated 12.10.2012, it was committed by the learned A.R that notice under section 87 has been withdrawn and the direction of the Tribunal will be complied within one month. Two months have elapsed since then and no action has been taken by the concerned officer. This is wilful disobedience of the directions of this Tribunal. Accordingly, the Dy. Commissioner, Service Tax Division, Raigad Commissionerate is hereby directed to show cause as to why contempt proceedings shall not be initiated against him for non-compliance of the direction of this Tribunal vide order dated 12.10.2012 cited supra. This notice is returnable within 15 days from today."
We have the latest update on this issue.
And the good news is that the CCE, Raigad had filed a Miscellaneous application before the CESTAT informing that they have paid an amount of Rs.19,28,342/- to the appellant vide cheque dated 21/12/2012 in terms of the CESTAT order dated 11/10/2012 and thus complied with the order. More importantly, the Deputy Commissioner has apologized for the delay in complying with the direction of the Bench.
So as to put an end to the matter, the Bench observed -
"3. Taking into account these facts, the show cause notice no. M/1100/12/CSTB/C-I dated 11/12/2012 issued to the Dy. Commissioner, proposing to initiate action, is discharged and the Miscellaneous Application is disposed of."