2010 (9) TMI 1172 - HC - VAT and Sales Tax

Summary

Issues involved: Petition under Article 226 of the Constitution of India regarding recovery of sales tax, interest, penalty, and attachment orders by Sales Tax Department.

Details of the Judgment:

Issue 1: Recovery of sales tax, interest, penalty, etc.
The petitioners sought a declaration that the respondents are not entitled to recover any amount from them related to Arunoday Mills. They also requested to quash the attachment of properties and UCO Bank account by the Sales Tax Department. The Court issued notice and directed maintenance of status quo. The petitioners' advocate proposed an amicable arrangement to remove the attachment on the land for sale, considering the pending appeals before the Tribunal and the granted stay against recovery. The Court directed the petitioners to deposit Rs. 4 crores with the Deputy Commissioner, Commercial Tax, Rajkot, for the removal of attachments on the land and bank account.

Issue 2: Attachment of properties by Sales Tax Department
The petitioners' advocate highlighted the outstanding liability of Rs. 9,54,39,601, of which Rs. 2,76,55,142 had been paid. The petitioners intended to sell the land to discharge their liabilities. The Court, without expressing any opinion on the merits, directed the petitioners to deposit Rs. 4 crores with the Deputy Commissioner, Commercial Tax, Rajkot, for the removal of attachments on the land and bank account. The removal of attachments was subject to the final outcome of the matters pending before the Tribunal, and the Tribunal was to decide independently without influence from the Court's order. The order was an interim arrangement, and both parties were allowed to present their contentions before the Tribunal.

Conclusion:
The Court disposed of the petition with directions for the petitioners to deposit Rs. 4 crores to remove attachments on the land and bank account, subject to the Tribunal's final decision. The order emphasized that it was interim and did not delve into the merits of the case, allowing both parties to present their arguments before the Tribunal.