TAHARPUR BRICK WORKS Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) This is a sales tax revision under Section 11 of the U.P. Sales Tax Act (for short "the Act") and is directed against the order dated 8th January, 1988, passed by the Sales Tax Tribunal, Moradabad Bench, Moradabad.

(2.) The brief facts leading to the filing of this revision are that M/s. Taharpur Brick Works (hereinafter referred to as "the assessee") was assessed to tax for the assessment year 1985-86. Being aggrieved by the assessment order, the assessee filed an appeal before the Assistant Commissioner (Judicial), Sales Tax. During the pendency of the said appeal, initially the assessee moved an application under Clause (ii) of the proviso attached to Section 9(3-A) of the Act. This provision empowers the first appellate authority for special and adequate reasons to be recorded in writing to waive or relax the requirement of the payment regarding one-third amount of the disputed amount of tax, required to be deposited under Clause (i) of the aforesaid proviso, before an application for stay could be entertained. The plea taken was that the assessee-firm had been closed and the erstwhile partners are not in such financial position to pay even l/3rd of the disputed tax. By an order dated 17th November, 1987, the appellate authority permitted the assessee to deposit only 13 per cent of the disputed tax and the balance of 20 per cent of l/3rd was waived.

(3.) Thereafter, the assessee moved another application, before the Assistant Commissioner (Judicial) under Sub-section (3-A) of Section 9 of the Act for staying the realisation of the disputed amount of tax amounting to Rs. 61,969.52 during the pendency of the first appeal. The Assistant Commissioner (Judicial) by his order dated 21st December, 1987 stayed only 60 per cent of the amount on the condition that the assessee would deposit in cash Rs. 24,781, i.e., 40 per cent of the disputed tax.