9911796707
TMI Blog1994 (1) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent interest thereon in 36 monthly equal instalments commencing from March 1, 1994 as was given to Tungabhadra Industries Limited, which is also an industry manufacturing vanaspathi, under G.O. Rt. No. 1337, Industries and Commerce (BIFR) Department, dated December 21, 1992. It may be mentioned here that its earlier petition-W.P. No. 17009 of 1992 for the same relief has been disposed of by judgment dated March 1, 1993, with the following direction: "..................In view of the statements by both the counsel, it is open for the petitioner to approach the Industries Department by filing a representation. If such a representation as stated above is filed, the department shall dispose of the same within a period of four weeks from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on February 12, 1992. The BIFR after enquiring into the matter held that M/s. TIL had accumulated losses of Rs. 639.69 lakhs as on March 31, 1990 as against its net worth of Rs. 85.50 lakhs and free reserves of Rs. 52.08 lakhs. Further it had also referred cash losses of Rs. 143.14 lakhs for the financial year ended March 31, 1989 and a further cash loss of Rs. 398.17 lakhs in the financial year ended March 31, 1990." t is also pointed out by him that the Government of Andhra Pradesh has considered the case of Tungabhadra Industries Limited as per the provisions of G.O. Ms. No. 319, Industries Department, dated July 4, 1989, the relevant portion of which reads as follows: "Government of Andhra Pradesh had constituted a four member com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21, 1992 is due to stoppage of reimbursement of sales tax consequent on the stoppage of import of oil and exemption given to vanaspathi factories situated in the States of Madhya Pradesh, Uttar Pradesh, Bihar and Orissa from payment of sales tax. For this reason, the learned counsel places strong reliance on the proposition declared by the Supreme Court in Indian Cement Ltd. v. State of Andhra Pradesh [1988] 69 STC 305 that the levy of different rates of local and inter-State sales tax that would affect free trade and commerce is contrary to the scheme of Part XIII of sthe Constitution. He tries to sustain this assumption on the basis of what is stated in paragraph 2(1) and (2) of G.O. Rt. No. 1337. In this context, it is necessary to me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that deferment of sales tax by the Government of Andhra Pradesh would improve the liquidity position of TIL to an extent of Rs. 427 lakhs to enable it to make payments to the sundry creditors of Rs. 1,046.10 lakhs. From this it is clear that in the direction of its rehabilitation, TIL necessarily has to collect sales tax from dealers and utilise it for making payments of sundry creditors. The petitioner-company has not submitted any evidence of reduction of prices of vanaspathi by TIL in relation to price of vanaspathi of the petitioner's-company. But assuming that TIL has reduced prices, such reduction could be for reasons other than deferment of sales tax which it is obligated to collect from dealers. The Government are not concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her set of taxpayers similarly situated may not have been given a similar concession. It would not be proper to strike down the provision of law giving concession to the former on the ground that the latter are not given such concession. Nor is it possible for this Court to direct that the latter set should be given a similar concession. That would mean legislation by this Court and this Court has no legislative powers." (para 5) (page Nos. 9 and 10 of STC). For the aforesaid reasons, we hold that neither article 14 nor article 301 of the constitution comes to the rescue of the petitioner. Also, no case is made out by the petitioner for grant of any relief on any other ground. The result is that this writ petition must fail. It is accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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