9911796707
TMI Blog1993 (2) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... f Punjab, vide two separate appeals, seeks setting aside of the order passed by the learned single Judge in the present appeals filed by it under clause X of the Letters Patent Act. The brief facts of the case reveal that Amritsar Sugar Mills Company Limited had a unit for the purpose of manufacture of vegetable oil products. The said oil products is situated at Amritsar. The Central Government in exercise of the powers conferred under sub-section (1) of section 18-AA of the Industries (Development and Regulation) Act, 1951, took over the management of the Amritsar Oil Works, vide notification dated September 13, 1974. The Amritsar Oil Works was a dealer under the Punjab General Sales Tax Act, 1948 and was being assessed as such. For the assessment year 1976-77, sales tax liability to the tune of Rs. 6,49,377 was created and a demand notice in that respect was issued. Similarly for the assessment years 1977-78 and 1978-79, sales tax liabilities to the tune of Rs. 7,62,966 and Rs. 12,53,861 respectively was created and separate demand notices were issued. A total liability to the tune of Rs. 20,16,827 for all the aforesaid assessment years was created. It is the aforesaid notices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the date of taking over of the Amritsar Sugar Mills Company, the taking over date being September 13, 1974. It was further pleaded by the petitioner that the various notices for recovery impugned in the writ petition were illegal and wholly unjustified. In order to appreciate the controversy, it shall be necessary to notice some of the provisions of the Act which have a direct bearing in adjudicating the dispute involved in the case: Sections 6, 7, 14, 16, 17 and 21 read as follows: "Section 6. The Amritsar Sugar Mills Company to be liable for certain prior liabilities.-(1) Every liability, other than the liability specified under subsection (2), of the Amritsar Sugar Mills Company in relation to the Amritsar Oil Works in respect of any period prior to the appointed day shall be the liability of the Amritsar Sugar Mills Company and shall be enforceable against it and not against the Central Government or where the Amritsar Oil Works vest in a Government company, against the Government company. (2) Any liability in respect of the amount advanced after the date of taking over of the Amritsar Sugar Mills Company in relation to the Amritsar Oil Works together with interest d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of its Amritsar Oil Works for the period commencing on the date of taking over and ending with the appointed day. (3) The amount specified in sub-section (1) and the amount calculated in accordance with the provisions of sub-section (2) shall carry simple interest at the rate of four per cent per annum for the period commencing on the appointed day and ending on the date on which payment of such amount is made by the Central Government to the Commissioner. Section 14. Appointment of Commissioner of Payments.-(1) The Central Government shall, for the purpose of disbursing the amounts payable under section 7 to the Amritsar Sugar Mills Company, by notification, appoint a Commissioner of Payments. (2) The Central Government may appoint such other persons as it may think fit to assist the Commissioner and thereupon the Commissioner may authorise one or more of such persons also to exercise all or any of the powers exercisable by him under this Act, and different persons may be authorised to exercise different powers. (3) Any person authorised by the Commissioner to exercise any of the powers exercisable by the Commissioner may exercise those powers in the same manner and w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Commissioner within thirty days from the specified date: Provided that if the Commissioner is satisfied that the claimant was prevented by sufficient cause from preferring the claims within the said period of thirty days, he may entertain the claim within a further period of thirty days but not thereafter. Section 21. Act to have overriding effect.-The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law, other than this Act, or in any decree or order of any court, Tribunal or other authority." A perusal of the relevant provisions quoted above would manifest that from the appointed day, i.e., October 19, 1982, Amritsar Oil Works vested in the Central Government and then with the petitioner-company. The Central Government paid a sum of Rs. 64,48,944.65 by virtue of provisions of section 7 of the Act for the transfer to and vesting in it of the Amritsar Oil Works and the right, title and interest of the Amritsar Sugar Mills Company in relation to the said Works. It is not disputed that the amount was deposited with the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act and that levy of sales tax and purchase tax on sale and purchase of goods is the State subject and no Central Act can override the provisions pertaining to such levy. In that context, it is argued that section 21 of the Act does not override the provisions of section 17 of the Punjab Act. There is no merit in the contention of the learned counsel. Section 17 of the Punjab Act reads as follows: "Section 17. Transfer of business.-Where the ownership of the business of a registered dealer is entirely transferred and the transferee carries on such business either in its old name or in some other name, the transferee shall for all the purposes of this Act (except for liabilities under this Act already discharged, by such dealer) be deemed to be and to have always been registered as if the certificate of registration of such dealer had initially been granted to the transferee; and the transferee shall on application to the prescribed authority be entitled to have the registration certificate amended accordingly." The Central Government has admittedly deposited the amount with the Commissioner of Payments for transfer and in vesting in it of the Amritsar Oil Works and specific ..... X X X X Extracts X X X X X X X X Extracts X X X X
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