INDIAN SUGAR AND GENERAL INDUSTRY EXPORT AND IMPORT CORPORATION LIMITED Vs. SALES TAX APPELLATE TRIBUNAL

JUDGEMENT

(1.) .These two appeals are preferred against the common order dated January 2, 1995 passed by the learned single Judge in W.P. Nos. 21185 and 21186 of 1994.In the writ petitions, the petitioner sought for quashing the orders dated December 13, 1994 passed by the Tamil Nadu Sales Tax Appellate Tribunal in T.P. Nos. 255 and 256 of 1994 in T.A. Nos. 1040 and 1041 of 1994 and for directing the Tribunal to pass fresh orders under section 36(5) of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as "the Act") in accordance with law.Learned single Judge has dismissed the writ petitions on the ground that there is no good reason to interfere with the order of the Appellate Tribunal, at the same time permitted the appellant to approach the Tribunal, if there is any difficulty in the matter.The following facts are not in dispute:The petitioner/appellant is assessed to tax in a sum of Rs. 89, 51, 693 and a penalty of Rs. 1,46,42,259 has been levied. Out of the aforesaid tax amount demanded, the petitioner has so far deposited Rs. 43 lakhs and odd.

(2.) THE tax due is Rs. 53,35,354. THE Tribunal directed the petitioner to furnish bank guarantee for the penalty sum. It is submitted that for the bank guarantee to be furnished, the petitioner/appellant would be required to pay Rs. 6,10,000 to the bank, instead of that it is submitted that the said amount or a little more would be deposited towards tax and bank guarantee for the balance of the tax would also be furnished.We have heard learned Additional Government Pleader for Taxes on this point also. As long as more than 50 per cent of the tax is paid by the petitioner/appellant and the security is to be furnished for the remaining balance, we see no reason to deny this relief to the petitioner. Accordingly, we dispose of both these appeals in the following terms : THE order dated January 2, 1995 passed by the learned single Judge in W.P. Nos. 21185 and 21186 of 1994 is set aside.