CHEMECH LABORATORIES LTD, Vs. APPELLANT ASSISTANT

JUDGEMENT

(1.) The challenge in the present writ petition is to quash the order dated 03.10.2001, passed by the Appellant Assistant Commissioner (CT) VII, Chennai.

(2.) The petitioner is a company incorporated under the Companies Act 1956, engaged in manufacture of drugs and blood products, plasma, Protein Fractions, Bio-technology and other items. In October 1989, the Government of India imposed a ban on the manufacture of blood products and directed the company to destroy all the stocks held by it. The company became sick and there was a reference to the Board for Industrial and Financial Reconstruction (BIFR), for rehabilitation in 1991, under Sick Industrial Companies Act, 1985.

(3.) Bank of India was appointed as the Operating Agency. Certain concessions were granted to the appellant. The petitioner company filed monthly A1 returns along with the tax dues for the assessment year 1992-93. On 03.10.1997, a notice was issued proposing to revise the assessment by adding 50% of the turnover and also for disallowing the tax collections cum sales tax etc., Penalty was also proposed to be imposed. The petitioner filed a rectification petition under Section 55 of the TNGST Act, which was also dismissed on 18.02.2003. Against the revised assessment order dated 26.11.1997, appeal was filed by the petitioner before the Appellate Assistant Commissioner (CT) VII. The Appellate Authority also dismissed the appeal on the ground that the books of accounts had not been produced before the Appellate Authority. The appeal was dismissed on 03.10.2001.