2000 (12) TMI 887 - AT - VAT and Sales Tax

Summary

Issues involved:
1. Quashing of Certificate Proceeding for realisation of dues under Bengal Finance (Sales Tax) Act, 1941.
2. Suspension of sales tax realisation proceedings under Sick Industrial Companies (Special Provisions) Act, 1985.
3. Entitlement to relief for stay of sales tax realisation proceedings.

Analysis:
1. The petitioner, a steel ingots manufacturer, faced financial difficulties leading to being declared a sick industrial company. Various legal actions were taken, including a proposed rehabilitation scheme and winding-up proceedings. The assessing authority raised a substantial demand for dues, prompting the petitioner to challenge the demand notice, citing non-compliance with statutory form requirements.

2. The petitioner sought suspension of sales tax realisation proceedings under the Sick Industrial Companies Act, arguing that the matter was pending before the court and the Board for Industrial and Financial Reconstruction (BIFR). However, the respondent contended that since no specific proceedings were pending before the BIFR, the petitioner was not entitled to relief under the Act.

3. The Tribunal analyzed the provisions of the Sick Industrial Companies Act and relevant case law to determine the entitlement to relief for stay of sales tax realisation proceedings. Referring to precedents, the Tribunal highlighted that High Courts did not typically intervene to halt proceedings against sick industrial companies, leaving it to the Board's discretion. As no pending proceedings under the Act were identified, the Tribunal concluded that the petitioner was not entitled to the requested relief.

Judgment:
The Tribunal dismissed the application under the West Bengal Taxation Tribunal Act, 1987, finding that the petitioner was not entitled to a stay of the sales tax realisation proceedings. The application was dismissed without costs, and the request for stay of the order's operation was also rejected.