1995 (1) TMI 346 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of sales tax exemption application.
2. Legality of revenue recovery proceedings.
3. Jurisdiction of the third respondent.
4. Government's objection to exhibit P2.
5. Timely decision on exemption application.

Analysis:
1. The petitioner, a partnership firm engaged in manufacturing plastic coated kitchen stands, applied for sales tax exemption as a small-scale industrial unit. The unit was registered with the District Industries Centre, and the Government passed an order allowing exemption for new SSI units. The application for exemption was pending with the third respondent, and the petitioner raised concerns over demand notices issued by the first respondent before a decision on the exemption application was made.

2. The petitioner argued that since the exemption application was pending and the third respondent had requested the second respondent not to take coercive steps, the revenue recovery proceedings initiated through demand notices could not be legally sustained. The learned Government Pleader for the respondents contended that the third respondent had no jurisdiction to issue certain documents, but the court found no merit in this argument.

3. The court held that the Government could not object to an order issued by its own officer, presuming that the officer acted with full authority. However, the court emphasized the need for a timely decision on the exemption application to avoid undue delay in collecting any dues from the petitioner. The court directed the third respondent to pass final orders on the exemption application within one month and ordered to keep revenue recovery proceedings in abeyance until a decision was made.

4. In conclusion, the court disposed of the original petition by directing the third respondent to decide on the petitioner's application for sales tax exemption promptly. The court's decision aimed to ensure a fair resolution of the issues raised by the petitioner regarding the legality of the revenue recovery proceedings and the jurisdiction of the concerned authorities.