K. Rajvel, Proprieto... v. The Managing Directo...

A.M Shaffique, J.:— Petitioner has approached this Court seeking the following reliefs:

“(i) To issue a writ of mandamus or other appropriate writ, order or direction directing the 2 respondent to refund the deducted Service Tax amount of Rs. 11,83,665/- to the petitioner in the light of Ext. P2 agreement, without further delay.

(ii) To issue a writ of mandamus or other appropriate writ, order or direction directing the respondents to refund the deducted service tax amount of Rs. 11,83,665/- together with interest @ 12% per annum to the petitioner.

(iii) To declare that the respondents would be liable to refund the deducted Service Tax amount of Rs. 11,83,665/- to the petitioner in the light of Ext. P2 agreement and Ext. P8 notification.

(iv) To declare that the reverse charge mechanism is applicable to the respondents, under Section 68(2) of the Finance Act, 1994.”

2. Learned Standing Counsel appearing for the respondents submits that the liability is disputed. In so far as the matter complained of arises out of the realm of a contract, I do not think that this Court will be justified in interfering especially when the liability is disputed on behalf of the respondents. It is settled law that when there is a bona fide dispute in respect of the contractual obligation, there is no reason why this Court should interfere in such matters. The remedy of the petitioner is to approach the Civil Court or appropriate authority, as contemplated under the terms of the contract.

3. Reserving the said right of the petitioner, this writ petition is dismissed.