2011 (6) TMI 692 - HC - VAT and Sales Tax

Summary

Issues Involved:
- Interpretation of the notification dated July 1, 2008 for compounding on a per machine basis by the Central Excise Department.
- Provisional assessment made by the Trade Tax Department for the period April, 2010 to December, 2010 relating to the assessment year 2010-11.
- Granting of stay on disputed tax by the first appellate authority and the Trade Tax Tribunal.
- Consideration of financial stringency and prima facie merit of the case by the Trade Tax Tribunal.
- Decision on the liability of tax and the need for expeditious disposal of pending appeal.

Analysis:
The revisions were filed under section 11 of the U.P. Trade Tax Act, 1948 against a common order by the Trade Tax Tribunal Bench I, Lucknow. The revisionist argued that a notification from July 1, 2008, allowed for compounding on a per machine basis by the Central Excise Department, and a survey conducted by the Trade Tax Department led to a provisional assessment for the period in question. The first appellate authority had granted a stay of 60% of the disputed tax, which was contested in the second appeal before the Trade Tax Tribunal.

The Trade Tax Tribunal, in its order dated May 21, 2011, granted a stay of 80% of the disputed tax, which the revisionist found inadequate. The Chief Standing Counsel argued that the Tribunal considered financial hardships and aimed to balance equity by granting the stay. However, the court noted that the liability of tax was yet to be determined, and the first appeal was pending. Therefore, the court directed the pending appeal to be decided expeditiously within three months from the date of the order.

As per the court's direction, the revisionist was required to deposit 7% of the disputed tax amount within 30 days before the assessing authority and provide security for the remaining balance. The court emphasized cooperation from both parties in the pending appeal process for its efficient disposal. The judgment aimed to ensure a fair consideration of the case, taking into account both the financial aspects and the need for a timely resolution of the tax liability issue.