LAWS(CHH)-2017-5-120

UNIWORTH TEXTILES LIMITED Vs. STATE OF CHHATTISGARH

Decided On May 19, 2017
UNIWORTH TEXTILES LIMITED Appellant
V/S
STATE OF CHHATTISGARH Respondents

JUDGEMENT

(1.) Since common question of law and fact is involved in these writ petitions, they are heard together and are being disposed of by this common order.

(2.) The assessing authority by its impugned order in exercise of power under Section 26 (4) (a) of the Chhattisgarh Vanijyik Kar Adhiniyam, 1994 (for short 'the Act of 1994') imposed interest on the petitioners for the period from 1-4-2000 to 31-3-2001 and from 1-4-2001 to 31-3-2002 which was challenge in appeal before the appellate authority and the appellate authority also held that merely on the ground of registration in the Board for Industrial and Financial Reconstruction (BIFR), interest liability cannot be waived. Thereafter, the Chhattisgarh Commercial Tax Tribunal by its order held that on the basis of mere registration with the BIFR, interest liability cannot be waived and also held that statutory liability to pay interest must be expressly waived against which these writ petitions have been filed.

(3.) Mr. Kishore Bhaduri, learned counsel appearing for the petitioners, would submit that tax liability has already been discharged by the petitioners and the petitioners have sufficient cause, as the matter has been registered later-on with the BIFR on 29-5-2002 and in view of Section 22 (1) of the Act of 1994, the impugned orders are liable to be set aside. He would rely upon the decision of the Supreme Court in the matter of Tata Davy Ltd. v. State of Orissa and others, (1997) 6 SCC 669 and the decision of the Allahabad High Court in the matter of J.K. Cotton Spinning and Weaving Mills Co. Ltd. v Union of India, 2017 (345) E.L.T. 27 (All.).