Issuance of attachment order under the provisions of the Customs Act for recovery of Service Tax dues is not valid

Last updated: 04 July 2024

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Quick Summary

The Madras High Court has ruled that using the Customs Act to recover Service Tax dues is invalid. The court stated that such recovery should be made under Section 142(8)(a) of the CGST Act. Consequently, an attachment order issued under the Customs Act was quashed. The court also granted the assessee an opportunity to file a statutory appeal, even if the time limit had passed, due to the unavailability of the original order.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in Zest Buildtek Promotors v. Deputy Commissioner of GST and Central Excise[W.P. No. 12349 of 2023 dated February 19, 2024], the Hon'ble High Court quashed the attachment order passed against the Assessee, thereby holding that, the issuance of attachment order under the provisions of the Customs Act for recovery of Service Tax dues is not valid as the same is recoverable under Section 142(8)(a) of the Central Goods and Services Act, 2017 ("the CGST Act") read with Section 174 of the CGST Act. Also, the Hon'ble High Court provided an opportunity to file statutory appeal irrespective of limitation period due to the non-availability of the physical order.

Citation :
W.P. No. 12349 of 2023 dated February 19, 2024

Daily Limit Reached