MODI INDUSTRIES LTD Vs. STATE OF U P

JUDGEMENT

(1.) Heard Counsel for the parties.

(2.) Admittedly, the petitioner is a sick unit within the meaning of Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (briefly, the Act).

(3.) The petitioner seeks quashing of the recovery proceedings initiated in regard to sales tax dues. Our attention has been drawn by Counsel for the petitioner to the Circulars dated 25-8-1995 and 6-11-1989 issued by the Trade Tax Commissioner. In the said circulars the Commissioner clearly stated that no recovery of sale tax dues will be made from a sick unit without permission of the Board as provided under Section 22 of the Act. It is trite that the circulars are binding on the departmental authorities.