SOUTHERN STEELS LTD. Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS petition for grant of stay of collection of demand of Rs. 13,94,298/ - pursuant to the order of Joint Commissioner (Legal) pending disposal of the appeal before this Tribunal, filed against his order. The appellant M/s. Southern Steels Limited, Hyderabad carries on business in manufacture and sale of hoop and strings at Hyderabad. The assessing authority found that it collected excess tax in the year 1988 -89 in contravention of Section 30B and in exercise of his powers under Section 30C, he forfeited the excess tax collection to the tune of Rs. 13,94,298/ - by his order dated 9 -1 -1992. On appeal, the Appellate Deputy Commissioner (CT), Punjagutta found that the order of assessing authority was not passed within three years of date of collection of excess tax and hence he set -aside the order of the assessing authority in view of section 30C(2) of APGST Act. The Joint Commissioner (Legal) revised the said order and raised a demand of Rs. 13,94,298/ -.

(2.) THE petitioner submits that the Joint Commissioner (legal) did not provide opportunity to the appellant before passing the order and violated the principles of natural justice; that the order of the assessing authority was barred by limitation as was rightly held by the First Appellate Authority; that the petitioner is a sick unit and made a reference application to the B.I.F.R., and is hard -pressed for funds and that it is not in a position to pay any amounts towards the demand and prays for the stay of the order in view of various grounds raised by him in the main appeal.

(3.) THE State Representative resisted the application mainly on the ground that the powers of the Tribunal to grant stay of collection of any tax or penalty was taken -away by insertion of Section 6A in Section 21 of APGST Act, w.e.f. 1 -7 -1985. According to the learned counsel for the appellant, the bar was only with respect to an order passed by the authorities, specified, the Section which does not include the Joint Commissioner (Legal) or Additional Commissioner against whose orders an appeal has to this Tribunal.