9911796707
TMI Blog1996 (2) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... il Nadu General Sales Tax Act, 1959, pursuant to the proceedings dated November 23, 1995, for the assessment 1984-85 to 1986-87. The petitioner submits that it was declared as a sick industrial company under Central Act 1 of 1986 and for the purpose of rehabilitation of the industry a scheme was framed by the Board of Industrial and Financial Reconstruction and that scheme provided, inter alia, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if it were an arrear of land revenue or fine imposed by a Magistrate. The learned counsel for the petitioner submits that the proceedins so initiated for recovery by way of distraint proceedings as if it were an arrear of land revenue is contrary to the provisions of section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985. Under section 22(1), it is stated that if in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rehabilitation scheme only on condition that the petitioner should pay the sales tax arrears in monthly instalments including interest under section 24(3) of the Act and as the petitioner had not complied with the terms of the scheme the benefit of the scheme is not available to the petitioner and the entire amount of sales tax arrears by way of penalty has become due and payable for which dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings only after compliance of the provisions of section 22. There is no provision in the scheme which denies the benefit of rehabilitation scheme to a party who is in arrears by not complying with the conditions laid down therein. The provisions of section 22 are beneficial provisions intended to rehabilitate a sick industry by implementing the scheme and the process of such rehabilitation should ..... X X X X Extracts X X X X X X X X Extracts X X X X
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