SIVANANDA STEELS LTD Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THIS writ petition is filed seeking for the issuance of writ of certiorari to call for the records in respect of the impugned order dated December 10, 2001 in connection with CST No. 46449 of 2001 -02 passed by the respondent and quash the same.

(2.) THE petitioner is a company manufacturing steel casting foundry and a registered dealer under the respondent. According to the petitioner due to globalisation, the petitioner -company was not able to compete with the multinational companies. Further there was restraint in respect of the steel casting market. Hence, the petitioner sustained heavy loss and the liability exceeded the assets of the company. Hence, the company was forced to move the BIFR for rehabilitation. BIFR after reviewing the company, ultimately framed a scheme by its proceedings dated September 28, 2000.

(3.) THE learned Counsel for the petitioner contended that in the scheme framed by the BIFR for revival it provides for waiver of penal charges and other interest outstanding as on the cut -off date under the head - Commercial Taxes Department. Hence, the amount demanded by the respondent is covered under the scheme. Till the petitioner revives the original position, the amount cannot be recovered unless or otherwise a specific positive order is obtained from the BIFR. He further contended that the entire sales tax amount has been paid and the penal interest has been covered under the scheme. In addition to that the petitioner has also moved the Samadhan Scheme and the same is pending before the authorities. Even in order to maintain the samadhan petition, the petitioner paid a sum of Rs. 2 lakhs. Hence, the show -cause notice has to be set aside.