Delhi High Court
Bhavya Creators Private Limited vs Union Of India & Ors. on 30 September, 2021
$~36
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 11127/2021 & C.M.No.34276/2021
BHAVYA CREATORS PRIVATE LIMITED ..... Petitioner
Through Mr.Navin Kumar, Advocate.
versus
UNION OF INDIA & ORS. ..... Respondents
Through Mr.Harpreet Singh, Standing Counsel.
Mr.Rajiv Kapur with Ms.Kushboo
Kapur and Mr.Akshit Kapur,
Advocates.
% Date of Decision: 30th September, 2021
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE NAVIN CHAWLA
MANMOHAN, J. (Oral)
1. Present writ petition has been filed challenging the Notice dated 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 dated 16th September 2014 issued by the Respondent No. 1,
which categorically provides that "No coercive measures for the recovery of
W.P.(C) 11127/2021
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:01.10.2021
18:40:26
balance amount i.e. the amount in excess of 7.5% or 10% deposited in terms
of Section 35F of Central Excise Act, 1944 or Section 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 & Service Tax
Goa; Appeal No. ST/85150/2015-MUM
4. Learned Counsel for the Petitioner also states that the appeal has been
pending for a long time and the Appellate Tribunal has not heard the appeal
for the last two years. He states that the Petitioner has also filed an
application for early hearing of the appeal filed before the Appellate
Tribunal but the said application is pending disposal since June, 2021. He
also states that the Respondent No.2 has neither replied to the letter of
request for de-freezing of the bank account nor issued any direction to the
Respondent No. 3 for de-freezing of the Bank Account, causing a huge loss
to the Petitioner.
5. Issue notice. Mr.Harpreet Singh, learned standing counsel accepts on
behalf of the Revenue and Mr.Rajiv Kapur, Advocate accepts notice on
behalf of respondent no.3-State Bank of India.
W.P.(C) 11127/2021
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:01.10.2021
18:40:26
6. Mr.Harpreet Singh states that the Customs, Excise and Service Tax
Appellate Tribunal is functional and appeals are being regularly heard by the
said Tribunal.
7. In view of the aforesaid, this Court directs the registry of Customs,
Excise and Service Tax Appellate Tribunal to list the Petitioner's appeal
before the appropriate Bench on or before 10th October, 2021. This Court
clarifies that it has not commented upon the merit of the controversy. The
rights and contentions of all the parties are left open. A copy of this order
shall be communicated by Registry of this Court to Registry of Customs,
Excise and Service Tax Appellate Tribunal forthwith. Accordingly, the
present writ petition along with pending application stands disposed of.
MANMOHAN, J
NAVIN CHAWLA, J
SEPTEMBER 30, 2021
KA
W.P.(C) 11127/2021
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:01.10.2021
18:40:26
