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TMI Blog2018 (3) TMI 1472X X X X Extracts X X X X X X X X Extracts X X X X ..... iver/deferment of tax dues in the wake of it being declared sick and the subsequent abandonment of it and the repeal of the SICA is under consideration, there appears to be no justification on part of the respondents to proceed and recover any past tax dues from the petitioner company at this stage. Petition disposed off. - Writ Tax No. 914 of 2015 - - - Dated:- 31-7-2017 - Pankaj Mithal and Umesh Chandra Tripathi, JJ. Shubham Agrawal for the petitioner. C. B. Tripathi, Special Counsel, for the respondents. JUDGMENT The petitioner company has preferred this petition for issuing a writ in the nature of mandamus commanding respondent no. 2 not to take any coercive action against it for recovering sales tax dues of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. The tax liability assessed by the Assessing Authority was reduced by the Additional Commissioner Grade-II (Appeal) Commercial Tax Ghaziabad. It is regarding above tax dues that the impugned recovery citations dated 16.11.2015 and 18.5.2015 for a sum of ₹ 1,18,01,873/- plus others has been issued against the petitioner. It is in the aforesaid background of facts that the petitioner has invoked the extra-ordinary jurisdiction for quashing of the aforesaid recovery and for a direction not to recover any such amount from it. We have heard Sri Shubham Agrawal, learned counsel for the petitioner and Sri C.B. Tripathi, Special counsel for the State of U.P. The pleadings exchanged between the parties have also been perused. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The submission of Sri C.B. Tripathi, learned Special counsel for the State is that the protection granted under Section 22 of the SICA regarding recovery of dues from the sick company is not available with regard to dues of the State. The modification of the rehabilitation scheme by the order of the BIFR dated 11.12.2008 is crucial and it does not automatically waves the interest or penalties of the sales/trade tax or defers the payment of tax for 10 years and to be recovered in 10 annual equal installments, as by adding the words to consider, a discretion is given to the State Government paramateria with Section 38 of the Act to waive or defer the payment of dues. The representation of the petitioner for deferment of payment of tax du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said date during the continuance/in operation of the SICA but without the consent of the BIFR. The petitioner company which was declared to be sick on 21.4.2008 may have ceased to be a sick industry w.e.f. 23.2.2010 in view of the subsequent order of the BIFR and may have been brought out of the purview of the SICA/BIFR but nonetheless since it specifically provides for continuance to implement the unimplemented provisions of the scheme for unexpired period of the scheme, clause 12.7.5 of the scheme would remain in operation for a period of 20 years from the date of the scheme and would not be affected in any way. In other words, the privilege granted to the petitioner company under the scheme in respect of payment of arrears of sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .P. Trade Tax Act. Therefore, the provision of Section 38 of the U.P. Trade Tax Act would not apply in the fact situation of this case. Notwithstanding the above, the petitioner company has filed a representation purported to be under Section 38 of the U.P. Trade Tax Act seeking waiver/deferment of payment of tax in terms of the scheme. It is contended that it remains pending. The argument that the said representation dated 4.6.2015 enclosed as annexure 8 to the petition has been rejected is not tenable in law. The reliance in this regard placed upon annexure 1 to the supplementary counter affidavit is of no consequence. The said enclosure is a letter of the Principal Secretary of the State of U.P. addressed to the Chief Standin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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