9911796707
TMI Blog2008 (11) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... where the demand is huge the same could be disposed of at the earliest, in view of the peculiar facts and circumstances of the case, in our considered opinion, the ends of justice in the present case will be met in case the recovery of the amount of disputed tax remains stayed during the pendency of the appeals before the appellate authority. We order accordingly - C.W.P. Nos. 2718,3244,4938 of 2008 - - - Dated:- 7-11-2008 - HEMANT GUPTA AND RAJESH BINDAL , JJ. ORDER:- The order of the court was made by RAJESH BINDAL J. This order will dispose of C.W.P. Nos. 2718, 3244 and 4938 of 2008, as common questions of law are involved. The facts have been taken from C.W.P. No. 2718 of 2008. Challenge in the present petition i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the requirement of various dealers located throughout the State and on the basis of which indent is given at Ambala Terminal for supply of the material. On receipt of such a requisition, the required supply is made to the depot at Parwanoo. The freight for the transportation of product from Ambala to Parwanoo is paid by Ambala Terminal, whereas from Parwanoo depot to the place of dealer/customer in Himachal Pradesh, the same is paid by Parwanoo depot. Some of the dealers of the petitioner-company are also carrying on the business of transport who carry the product from Ambala Terminal for Parwanoo depot which, in turn, is supplied to various customers in Himachal Pradesh. At Parwanoo depot, the seals/locks of tankers are opened and the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er-company. In remand again, certain quantity of stock transfers were rejected by the Assessing Authority, thereby raising a demand of Rs. 64,26,44,426 vide order dated November 23, 2007. Along with the assessment order, a demand notice was served on the petitioner-company for payment of the aforesaid amount within a period of 30 days from the receipt of the notice, which was received by the petitioner-company on December 13, 2007. In terms of the provisions of section 33 of the VAT Act, the petitioner again filed an appeal before respondent No. 3 along with the prayer for stay of recovery during the pendency of the appeal. However, during the pendency of the appeal and the stay application, the Assessing Authority started pressurizing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act, a tool in the hands of various taxing authorities to harass the honest tax-payer. The submission is that right of appeal, though a statutory right, but once created it is a substantial right meant to get one's grievance redressed. Once provided the same has to be effective and not illusory only. Providing no right to grant interim relief by the appellate authority would mean providing an ineffective remedy of appeal. Under the VAT Act, very wide powers have been conferred on the appellate authority including the power to enhance the tax but still the power is very basic in nature and goes to the root of the appellate jurisdiction, provide for remedy against illegal and arbitrary demands, has not been provided. Grant or non-gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king capital with a dealer is circulated in the business. The goods are converted into money and money is again utilised to manufacture goods or in case of trading, the same is used in buying and selling the goods. If a substantial portion of this money is taken away without any justifiable basis, it will be unreasonable restriction on trade to carry on business. In case an Assessing Authority in its wisdom opines that certain amount of tax is due from a person, the person aggrieved has the right to appeal as is provided for under the VAT Act. Depriving the appellate authority to grant interim stay under any circumstances and on the other hand requiring the dealer to pay the amount of tax so assessed would certainly be arbitrary, unreasonab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities without there being checks and balances would certainly result in harassment of the tax-payer. This court can take judicial notice of the fact from various cases which come to the court as to how arbitrary, illegal, exorbitant demands are raised without any basis, and then appeals are not decided for long periods. To prolong the agony of the assessee even after acceptance of the appeal, the amount of tax is not refunded. Learned counsel for the petitioners also referred to the facts of the case in hand and submitted that it is a glaring example of harassment at the hands of the Assessing Authority where year after year the demand is being created on the same issue and even after substantial amount of tax was deposited during ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
