9911796707
TMI Blog1992 (9) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... g the contentions raised in this reference, it would be necessary to refer to the short facts of the case. The opponent, M/s. Mit-N-Mir Private Limited, submitted its sales tax returns for the period from January 1, 1976 to December 31, 1976 and for the period from January 1, 1977 to December 31, 1977. Sales tax assessment orders were passed for the period from January 1, 1976 to December 31, 1976 on September 5, 1980 and for the period from January 1, 1977 to December 31, 1977, on March 10, 1981, by the Sales Tax Officer, Surat. According to the said orders, Rs. 26,453.40 were found due as a tax for the period from January 1, 1976 to December 31, 1976 and as the tax was not paid as per the returns he levied interest under section 47(4A) of the Sales Tax Act which was calculated at Rs. 31,585 up to September 5, 1980. Similarly, for the period from January 1, 1977 to December 31, 1977, interest of Rs. 27,126 was levied for the tax due. Against those orders, the opponent preferred two appeals before the Assistant Commissioner of Sales Tax who dismissed those appeals. Against the orders of the Assistant Commissioner of Sales Tax, the opponent preferred Second Appeals Nos. 98/81 and 36 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of jointly by the Industries Commissioner, Gujarat State, and the Commissioner of Sales Tax, Gujarat State. (4) Any unit getting benefits of moratorium as per the above order shall discharge their liability relating to sales tax arising hereafter from April 1, 1978. (5) Government is pleased to authorise the Committee of the Industries Commissioner and the Commissioner of Sales Tax to decide the number of annual instalments for recovering the postponed amount after the period of postponement is over. (6) No interest on the amount of sales tax, the recovery of which is postponed shall be levied for the period during which the postponement is granted to the unit." (Emphasis supplied) The object and purpose of the aforesaid resolution is to give benefits to the sick units at the relevant time. For giving benefits, classification is made between the sick unit run by the technician and the unit run by the non-technician. For the sick unit run by the technician recovery of the outstanding dues of sales tax is postponed for a period of three years. For the unit run by the nontechnician, recovery of the outstanding dues of sales tax is postponed for a period of two years. This p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue up to March 31, 1978, which subsequently comes up as assessment dues, shall be postponed for a period of three years from March 31, 1978 or from the date of the assessment orders which are subsequently passed after March 31, 1978. In our view, for the second part also, the reasonable interpretation would be that, the cut-off date is March 31, 1978. It is in conformity with the object and purpose of passing the aforesaid resolution. The object of the resolution is to give benefit to the sick units at the relevant time, i.e., in 1978. By the resolution, recovery of sales tax is postponed and that on the sales tax dues interest is not to be recovered for the period during which sales tax recovery is postponed. That object and purpose is mentioned in paragraphs 2 and 3 of the resolution. The object is to give assistance to the closed or sick small-scale industrial units either to revive them or to make them economically viable. For that purpose, the Government has constituted a State level co-ordination committee under the chairmanship of the Industries Commissioner, Gujarat State, by the Government Resolution dated July 3, 1976. The committee examined the problems of the sick units ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due up to March 31, 1978, for which assessment orders are passed subsequently shall be postponed for a period of three years from March 31, 1978. For the said period of moratorium no interest on the amount of sales tax due is to be levied as per paragraph 6. Re: Question No. 1: The question is whether the Tribunal is competent to interpret the Government Resolution which gave only a relief to the sick units and whether it is issued under provisions of the Gujarat Sales Tax Act, 1969 and the Rules framed thereunder. In our view, this question is framed as if the Government has issued the resolution de hors the statutory provisions of the Sales Tax Act. It seems that the attention of the Tribunal was not drawn to section 55 of the Sales Tax Act. Section 55 of the Sales Tax Act specifically provides that subject to such conditions as it may impose, the State Government may, if it is necessary so to do in the public interest or to redress an inequitable situation, remit, by an order either generally or specially, the whole or any part of the taxes payable in respect of any period by any dealer or a class of dealers or of any specified class of sales or specified sales or purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Resolution dated March 16, 1978, did grant postponement of recovery of sales tax dues from March 31, 1978, and did not grant postponement of sales tax dues from the date of filing of the returns by the assessee. In the result, as regards question No. (1), it is answered in the affirmative. We hold that the Tribunal was competent to interpret the Government Resolution dated March 16, 1978, which gave relief to the sick units and that the said resolution is passed as per the provisions of section 55 of the Gujarat Sales Tax Act. With regard to question No. (2), we hold that the Tribunal was right in law to extend the benefit of remission of interest on the postponed dues but at the same time the relevant date would be March 31, 1978 and not March 16, 1978. In view of our answer to question No. (1), question No. (3) is required to be answered in the affirmative to the extent that recovery of sales tax dues against the opponent and interest thereon is not required to be postponed from the date of filing of the return but it is required to be postponed from March 31, 1978. In other words, the Government Resolution dated March 16, 1978 had granted postponement of recovery of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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