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TMI Blog1993 (9) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... ted way on and from the assessment year 1984-85, in the case of closely held companies. The said section 40 was further amended by the Finance Act, 1988 (26 of 1988). The petitioner-company owns assets in the shape of property at Nandhanam, as well a property at Delhi, apart from other assets. The company, it appears, was subjected to wealth-tax assessment, ever since the assessment year 1985-86 onwards. For the four assessment years, namely, 1985-86 to 1988-89, the assets of the company had been valued for the purpose of wealth-tax on the respective dates of valuation, relatable to the assessment year as per the modalities prescribed. The company, it appears, took the stand that part of the property at Nandhanam should be regarded as sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the company, besides finding that there are no other extraordinary circumstances warranting interference by way of grant of stay as prayed for. Aggrieved by the said order, the company resorted to the present action praying for issue of a writ of certiorari to quash the same and pass such further or other orders, as this court may deem fit and necessary in the circumstances of the case. Along with the writ petition, the company also filed W. M. P. No. 26155 of 1993 praying for stay of collection of the amount as demanded. Mr. V. Ramachandran, learned senior counsel, appearing for the petitioner, would resort to mounting a relentless attack on the order impugned as being perverse and, therefore, not sustainable, in the eye of law, ina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was of the view that the company was not entitled to the exemption as it has cleared the goods earlier without paying central excise duty, but on furnishing bank guarantees under various interim orders of courts. The company claimed the benefit of the exemption to the tune of Rs. 6.05 crores and filed a writ petition in the Calcutta High Court and sought an interim order restraining the central excise authorities from the levy and collection of excise duty. (b) The learned single judge took the view that a prima facie case had been made out in favour of the company and by an interim order allowed the benefit of the exemption to the tune of Rs. 2,93,85,000, for which amount the company was directed to furnish a bank guarantee, that is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertainly in favour of the Government of India. Governments are not run on mere bank guarantees. We notice that, very often, some courts act as if furnishing a bank guarantee would meet the ends of justice. No Governmental business or for that matter no business of any kind can be run on mere bank guarantees. Liquid cash is necessary for the running of a Government as indeed any other enterprise. We consider that where matters of public revenue are concerned, it is of the utmost importance to realise that interim orders ought not to be granted merely because a prima facie case has been shown. More is required. The balance of convenience must be clearly in favour of the making of an interim order and there should not be the slightest indicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontractors has been stayed, with the result that at the end of the year the contractor has paid nothing but made his profits from the shop and walked out. We have come across cases where dealers in food grains and essential commodities have been allowed to take back the stocks seized from them as if to permit them to continue to indulge in the very practices which were to be prevented by the seizure. We have come across cases where land reform and important welfare legislations have been stayed by courts. Incalculable harm has been done by such interim orders. All this is not to say that interim orders may never be made against public authorities. There are, of course, cases which demand that interim orders should be made in the interests o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the like." Worthwhile it is, at this juncture, to pen down the frowning of the Supreme Court, with agony and anguish, as to the grant of stay orders by entertaining writ petitions under article 226 of the Constitution of India, as found stated even at the threshold of the said judgment ( at page 174) : " It is indeed a great pity and, we wish we did not have to say it but we are afraid we will be signally failing in our duty if we do not do so some courts, of late, appear to have developed an unwarranted tendency to grant interim orders-interim orders with a great potential for public mischief for the mere asking. We feel greatly disturbed. We find it more distressing that such interim orders, often ex parte and non-speaking, are m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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