2011 (3) TMI 1727 - HC - VAT and Sales Tax

Summary

Issues involved: Application for interim relief u/s 11 of the U.P. Trade Tax Act, 1948 challenging the Trade Tax Tribunal's order.

Summary:
The applicant, engaged in manufacturing gutka, challenged the Trade Tax Tribunal's order rejecting their books of account based on machine utilization. The Additional Commissioner stayed 50% of the disputed tax, later modified by the Tribunal to 70%. The applicant filed revisions, arguing financial stringency was not considered. Citing legal precedents, the applicant contended that the power of stay should be judiciously exercised. The Tribunal's decision was criticized for not adequately considering financial aspects. Relying on various judgments, the applicant emphasized the importance of assessing prima facie merit and financial conditions when granting waiver cum stay. The Court, considering the case's circumstances, modified the Tribunal's order, staying 90% of the disputed tax and requiring a 10% deposit within fifteen days, along with providing security to the assessing authority.