JAGBIR SINGH Vs. STATE OF UP

JUDGEMENT

(1.) In these writ petitions the petitioners have prayed for quashing the recoveries issued by the Assistant Collector, Grade-I, Saraswati Vihar, Delhi, against them on the directions of the Deputy Commissioner (Assessment) Trade Tax-8, Ghaziabad for recovering trade tax dues of Rs. 2,95,67,763/- including interest vide recovery certificate dated 4.4.2000 and Rs. 14,79,90,000/-; and Rs. 1,50,000/- vide recovery notice dated 14.7.2005 annexed to the writ petitions. We have heard Shri Kunwar Saksena, learned counsel appearing for the petitioners. Shri S.P. Kesarwani, Additional Chief Standing Counsel appears for the State respondents.

(2.) Brief facts giving rise to the writ petitions are that the petitioners were directors in M/s. Maharashtra Steels Limited-a Public Limited Company, South of G.T. Road, Ghaziabad, engaged in manufacture of Iron and Steel. The unit suffered losses on which it was declared as 'sick industrial unit' by the Board of Industrial Finance and Reconstructing, under the Sick Industrial Undertakings (Special Provisions) Act, 1985. A revival scheme was prepared in which the industrial unit was proposed to be run on the fresh infusion of finances to be provided by the Industrial Finance Corporation of India (IFCI).

(3.) Shri I.S. Gambhir, the Director of the company and Shri A.S. Solanki, the Managing Director applied for registration under Section 8-A of U.P. Trade Tax Act, 1948 as well as Section 7 of the Central Sales Tax Act, 1956. In the statement given on oath by the representative of Shri I.S. Gambhir on 20.4.1991, it was stated that the company was under BIFR of which Shri I.S. Gambhir is the new promoter. It was stated in the statement recorded on Registration Form No. 14, that the entire machines are new. An application under Section 4-A was submitted by Shri A.S. Solanki (Managing Director) wherein it was represented/declared/certified that all the plants, machineries, equipments, apparatus and components have not been used or acquired for use in any other factory or workshop in India before installation in the unit.