9911796707
TMI Blog1989 (10) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... 3, 1984. On verifying the books of account and other relevant records, the officers found several irregularities and discrepancies. The petitioner was served a show-cause notice and was called upon to show cause as to why excise duty amounting to Rs. 32,43,576.09 should not be recovered on processed man-made fabrics measuring 60,48,662.50 mts. valued at Rs. 6,17,66,588.37. The petitioner was also called upon to explain as to why the action mentioned in the show-cause notice be not taken. At the conclusion of the enquiry, the Collector directed the petitioner to pay an amount of excise duty of Rs. 32,43,576.09 (Rs. 31,12,560.03 additional excise duty + Rs. 1,31,008.06 handloom cess.). The Collector also imposed a penalty of Rs. 15,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4,00,000 (Rupees four lakhs only) and this court stayed the operation of the order of the Tribunal. It is stated at the Bar that the petitioner has paid the aforesaid amount in the Tribunal. Thus, still, the petitioner would be required to make deposit of Rs. 16,00,000 (Rs. sixteen lakhs) as per the direction given by the Tribunal in its order dated December 7, 1988, (annexure K), if the order of the Tribunal becomes operative and the same is to be implemented. The petitioner contends that the order passed by the Tribunal is not just and proper. In his submission, at the most, an amount of Rs. 4,00,000 as ordered by this court should have been directed to be deposited and not an amount of Rs. 20,00,000 as has been done by the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , at the same time, such request should not, ordinarily, be granted so as to adversely affect the other side. In matters pertaining to fiscal statutes and collection of taxes from factory owners, traders and businessmen, and other taxpayers, consequences of interim orders are required to be borne in mind by the court. In the instant case, the Tribunal directed as per its order dated December 7, 1988, that the petitioner should deposit Rs. 20,00,000 in cash and, on that condition, there shall be waiver of pre-deposit as well as stay of recovery of balance duty and penalty amount. The Tribunal granted eight weeks' time to make the deposit from the date of communication of the order. It may be reasonably calculated that by February 10, 1989, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the tax money by the "Crown" requires reconsideration. Under the Constitution of India, there is no "Crown", there is no "subject". The society, through the instrumentality of the State and the Governments, taxes it members, i.e., the people at large. In other words, the people in whom the ultimate sovereignty rests, empower the Government as provided under the Constitution to tax themselves. In view of this constitutional provision, the society needs protection from the powerful economic interests that be. The court machinery and the orders of the court cannot be permitted to be used by the powerful economic interests so as to inflict loss on the society. Just as the citizens need protection at the hands of the court, the society als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delay the decision in such matters while permitting the factory owner to enjoy the protection of a stay order is not only illegal but it amounts to permitting the factory owner to fleece the pockets of the people. Under the cover of law, instead of the factory owner paying tax to the society, the society pays tax to the factory owner. " The aforesaid observations made by the Division Bench of this court are pertinent and are required to be borne in mind while considering the request for granting time to make payment. A court by its order would not and rather should not permit a litigation in court to be converted into a sound business proposition. No capital investment, no risk. But all profits and profits. Even if a petitioner ultimate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aforesaid condition, it is directed that the ad interim relief granted by this court on January 24, 1989, shall remain in operation upto December 18, 1989. However, if the petitioner does not make payment of the amount of interest as indicated hereinabove, this direction by which the ad interim relief granted earlier by order dated January 24, 1989, is kept in abeyance up to December 18, 1989, shall stand automatically vacated. Office is directed to send a copy of this order to respondent No. 2 herein, i.e., the Registrar, Customs, Excise and Gold (Control) Appellate Tribunal, Bombay. Subject to the aforesaid observation and direction, the petition stands rejected. Ad interim relief stands rejected. However, if the direction given h ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
