Stay abreast with the latest developments in the professional domain along with in-depth analysis through the monthly BCA Journal. Get access to an engaging library of researched publications from the BCAS stable.
Learn MoreExplore past issues of BCA Journal & indulge in a treasure trove of high-quality professional content across format of print, videos & learning events from the BCAS stable.
Learn More
Demand alleged to be due as per SCN without its adjudication cannot be recovered by issuing notice to banks and debtors
Facts
On the basis of investigation, a Show Cause Notice (SCN)was issued which was replied to by the Appellant denying the allegation. Without giving an opportunity of personal hearing and passing the adjudicating order, recovery proceeding was initiated by sending account freezing notices to banks. On initiation of said action, partial service tax was deposited and the said action was challenged before the High Court.
Held
The High Court observed that until and unless there is crystallisation of demand by proper adjudication, recovery action cannot be initiated when all allegations were denied in the reply filed. Accordingly, the recovery notices were set aside.
