Page 50 - GSTL_30th April 2020_Vol 35_Part 5

536 GST LAW TIMES [ Vol. 35
9. The writ petition is disposed of accordingly.
10. Urgent certified copy of this order be granted as per rules.
_______

2020 (35) G.S.T.L. 536 (Gau.)
IN THE HIGH COURT OF GAUHATI
Ujjal Bhuyan, J.
BRAHMAPUTRA TELE PRODUCTIONS PVT. LTD.
Versus
STATE BANK OF INDIA
W.P. (C) No. 1123 of 2019, decided on 29-7-2019
Interest - Imposition of - Maximum percentage of interest of 36% im-
posed mechanically - It was arbitrary without any exercise of discretion indi-
cating non-application of mind - C.B.E. & C. Circular dated 28-2-2015 allows
instalment payments maintaining balance between recovery of arrears and
survival of business - Section 75 of Finance Act, 1994. [paras 23, 24]
Adjudication - Scope of - It is not required where assessee admits to
Service Tax dues as specified in show cause notice or in garnishee notice and
requests payment in instalments. [para 22]
Finance Act, 1994 - Section 73 - Scope of - Element of adjudication is
inbuilt - Representation on show cause notice has to be considered before
quantifying Service Tax dues. [para 21]
Petition disposed of
CASE CITED
Prasanthi v. Union of India — 2016 (41) S.T.R. 392 (Kar.) — Distinguished ................ [Paras 12.1, 16, 22]
DEPARTMENTAL CLARIFICATION CITED
C.B.E. & C. dated 28-2-2015 ............................................................................................................. [Paras 13, 24]
REPRESENTED BY : Ms. N. Hawelia, Counsel, for the Petitioner.
[Order]. - Heard Ms. N. Hawelia, Learned Counsel for the petitioner and
Mr. B. Sarma, Learned Standing Counsel, Central Excise Department for re-
spondent No. 2.
2. None has appeared for respondent No. 1, State Bank of India.
3. By filing this petition under Article 226 of the Constitution of India,
petitioner seeks quashing of garnishee notices issued by respondent No. 2 to re-
spondent No. 1 and seeks a direction to respondent No. 2 to allow payment of
service tax dues in installments.
4. As would be evident from the above, matter relates to payment of
outstanding service tax dues by the petitioner.
4.1 Petitioner is a company incorporated under the Companies Act,
1956, having its registered office at Guwahati. For the period from April, 2013 to
September, 2016, though petitioner had submitted its service tax returns, because
of financial constraints, it could not pay the service tax collected. According to
the petitioner, total liability for the said period stood at ` 6,27,45,124.00. For reali-

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