Decision of the HC would be binding in case dispute between decision of HC and departmental circular arises
The Ahmedabad Tribunal held that in case of conflict between the decision of the HC and CBEC circular, decision of the HC would prevail. It was also held that in case of conflict between decisions of two HC, decision of the jurisdictional HC would be binding and final.
[Astik Dyestuff Pvt. Ltd. Vs. Commissioner of Central Excise and Customs (2014-TIOL-237-HC-AHM-ST)]
Bail to be granted for an offence bailable at the time of its commission
The HC held that bail cannot be denied by way of retrospective amendment for an offence that was bailable at the time when it was committed.
[Sudip Das Vs. Union of India (2014-TIOL-314-HC-KOL-ST)]
However, in the case of Kandrarameshbabu Naidu Vs. Superintendent (AE) Service Tax, Mumbai – II, 2014-TIOL-3070HC- MUM-ST, the Mumbai HC held a contrary view. It was held that in cases where the assessee collected significant amount of service tax (more than Rs. 50 lakhs) but did not pay the same to the government, the provisions related to arrest would apply. It was also held that since huge amount was outstanding even at the time of arrest thus, bail would not be granted to the assessee.
Applicability of the principle of Double Jeopardy
The HC held that simultaneous proceedings are maintainable under the provisions of Punjab VAT Act and IPC in particular circumstances of the case. It was also held that if offences committed are punishable under two or more enactments then, the offender may be prosecuted and punished under either or both the enactments but shall not be liable to be punished for same offence.
[Sharanjit Singh Vs. State of Punjab (VSTI 2014 (Vol. 19) B – 115)]
No recovery during pendency of stay application
The HC held that in cases of pendency of stay application for reasons beyond the control of the assessee, no orders for recovery of dues can be made. However, recovery of dues can be initiated only if the stay application is pending for the default or improper conduct of the assessee.
[Dabur India Ltd. Vs. Union of India and 2 Ors. (2014-TIOL-300-HC-ALL-CX)]