BALAJI DISTILLERIES LTD. Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE petitioner has sought for a writ of certiorarified mandamus to quash the order of the second respondent, in his impugned proceedings bearing reference in communication No. RC. 196/04/A2, dated April 10, 2007, as being arbitrary, illegal and contrary to the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 and the proceedings of the fourth respondent to seek taking of any coercive steps against the petitioner for recovery of any tax arrears for the period up to March 31, 2007 under the Tamil Nadu General Sales Tax Act, 1959 and the Tamil Nadu Value Added Tax Act, 2006, including by issuance of form B6 notice or by attaching properties or monies directly or otherwise through the third respondent till the sanction by the fourth respondent of the scheme of rehabilitation under SIC (SP) Act, 1985 and receive payments and enforce payments in respect of taxes strictly in accordance with the final orders to be passed by the fourth respondent in exercise of its powers under SIC (SP) Act.

(2.) BRIEF facts leading to the writ petition are as follows:

(3.) THE petitioner has further submitted that they have capitalised the plant, machinery and building, etc., of the brewery project at Rs. 110 crores, employed over 1000 employees and contributed around Rs. 1000 crores from the above distillery and brewery units to the State exchequer by way of excise duty, sales tax, etc. During the financial year 2000 -01 onwards, the company was suffering considerable loss, which resulted in heavy interest burden, delay in implementation of the brewery unit and higher input cost without any corresponding increase in the prices, etc. The above factors lead to deterioration of the company.