2020 (8) TMI 894 - HC - VAT and Sales Tax

Seeking waiver of interest, penalty and the amount towards non-productions of 'C' forms - HELD THAT - Insofar as the favourable recommendation towards waiver of the interest and penalty, the petitioner herein may not have any further grievance, since the same is under active consideration before the Waiver Committee. Hence, it would be appropriate to close these writ petitions, insofar as these two heads are concerned, with liberty to the petitioner to challenge any adverse findings made by the Waiver Committee, in this regard. Refusal to recommend the waiver of the amount relating to non-submission of 'C' forms - HELD THAT - The BIFR order dated 17.10.2008 in paragraph 10.(B)8 has ordered for exemption in favour of the company from all penalties, penal charges, including interest, interest on interest etc., and all other levies of such nature levied or leviable for late payments of sales tax, late filing of returns etc. As such, the department may not be justified in rejecting such a finding of the BIFR, on the ground that there is no proof to support the loss of records and thereby defy the orders of BIFR - Even assuming that such records are available, the department may not have any option except, to exempt the company for such an amount, which pertains to the non-submission of 'C' forms, in view of the orders of BIFR. In this regard, if the petitioner is granted liberty to approach the Government with a representation seeking for such a waiver, the ends of justice could be secured. The petitioner is granted liberty to make a representation to the first respondent seeking for waiver of the amount of ₹ 80,42,027/- relating to non-submission of 'C' forms for the years 1994-95, 1995-96, 1998-99 and 2000-2001 and on receipt of such a representation, the first respondent shall consider the same and take appropriate course of action - Petition disposed off.

Summary

Issues:
1. Request for waiver of interest, penalty, and non-production of 'C' forms.
2. Non-consideration of petitioner's request leading to filing of writ petitions.
3. Pending departmental request for waiver of penalty and interest.
4. Refusal to recommend waiver of amount for non-submission of 'C' forms.
5. Interpretation of BIFR order and justification for waiver.
6. Setting aside of impugned notice and granting liberty for representation.

Analysis:
1. The petitioner, a sick industrial company, sought a waiver of interest, penalty, and non-production of 'C' forms based on a revival scheme sanctioned by the BIFR. The department's non-consideration of the request prompted the filing of writ petitions.
2. While the department had requested the Waiver Committee for remission of penalty and interest, the matter was pending as of the last update. The petitioner did not contest the favorable recommendation for waiver of interest and penalty, leaving room to challenge any adverse findings by the Waiver Committee.
3. The dispute arose regarding the refusal to recommend waiver for the amount related to non-submission of 'C' forms. The BIFR order had exempted the company from penalties, interest, and other levies for late payments of sales tax, contradicting the department's stance of lacking proof for loss of records.
4. The judgment emphasized that the department should not defy the BIFR's orders and should consider exempting the company from the amount concerning non-submission of 'C' forms. The petitioner was granted liberty to approach the Government for representation seeking waiver, aligning with the ends of justice.
5. Consequently, the impugned notice was set aside, allowing the petitioner to represent to the first respondent for waiver of the specified amount. The first respondent was directed to consider the representation in line with the BIFR's orders within 12 weeks. The petitioner retained the right to challenge any adverse findings on penalty and interest recommendations before the Waiver Committee.
6. The Writ Petitions were disposed of without costs, and the connected miscellaneous petition was closed, concluding the legal proceedings.