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TMI Blog2002 (10) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... ers P. 5, P. 6, P. 7, P. 8 and P. 10 which are assailed by the petitioner in this writ petition. 2. Petitioner is a public limited company registered under the Companies Act, 1956. Petitioner became sick industrial company and was so declared by Board for Industrial and Financial Reconstruction (BIFR) as per order P. 1 dated 9-5-2000. Petitioner submitted rehabilitation package along with various relief and concessions proposed is under examination of the operating agency appointed by BIFR as well as the Government of M.P., the Department of Commerce and Industries. The fact of petitioner becoming a sick industrial company was brought to the notice of the Commercial Tax Officer vide reply dated 22-10-2001. Petitioner submits that Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt, cancellation of certification without consent of the BIFR and denial of the declaration form is arbitrary, illegal and bad in law. The action is illegal, arbitrary and has been passed in ignorance of the legal position under section 22(1) of the Act. Petitioner has been prohibited from doing the business. Thus purpose of rehabilitation being made by the operating agency as reflected in the communication P. 3 of the State Government. 3. In the return the respondents contend that section 22 of the Act lays down that during the pendency of the application for declaring an industry to be sick industry and during the pendency of the preparation of the rehabilitation package no steps for distress sale or recovery of due be taken up again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecovery proceedings but is a simple letter of request to the Commercial Tax Department to direct the Commercial Tax Officer, Chhindwara to stay the proceedings of recovery and, therefore, does not confer any right on the petitioner to claim any relief on that basis. The recovery is in accordance with law. The writ petition is liable to be dismissed. 5. Shri H.S. Shrivastava, learned counsel for the petitioner, submits that the impact of the order P. 1 passed on 9-5-2000 by BIFR has been completely ignored. The action is in contravention of the directions issued by the State Government under section 32(10)( a ) of the Commercial Tax Act, 1994. It was incumbent upon the Commercial Tax Department to consider the directions issued by the St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... protection under the Act. The Commercial Tax Department has been requested as ordered that till the matter is pending before BIFR, no proceedings be initiated for recovery with respect to the sales tax dues and directions be issued in that regard to the Commercial Tax Officer, Chhindwara. This order is in the spirit of section 32(10)( a ) of the M.P. Commercial Tax Act, 1994. It read as under : "(10)( a ) Where the State Government after such enquiry as it may deem fit, is of the opinion that genuine hardship is being caused to a dealer or person due to any proceedings initiated for recovery of any amount of tax, interest or penalty or other dues outstanding against him, the State Government may, subject to such restrictions and conditi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ections with respect to the subsequent recovery also as the word used is "any amount of tax" and this has not been clarified with reference to the cut off date mentioned by BIFR. Even otherwise, in any view of the matter as the direction has been issued by the State Government that has to be in the context of the rehabilitation step in terms of section 32(10)( a ) of the M.P. Commercial Tax Act, 1994. The recovery in question is clearly covered by the direction issued by the State Government which is binding on the Commercial Tax Department and ought to have been taken into consideration. If any further clarification was required by Commercial Tax Department it ought to have been sought from the State Government, Department of Commerce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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