ALUMINIUM INDUSTRIES LIMITED Vs. COMMERCIAL TAX OFFICER TANDUR

JUDGEMENT

(1.) These writ petitions have been filed by the writ petitioner questioning the impugned notices of provisional assessment and demand relating to various periods and seeking to recover Central sales tax as illegal and contrary to the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985.

(2.) The case of the writ petitioner is that the board of directors made a reference to the Board for Industrial and Financial Reconstruction, and the same was registered as 93 of 1987. The Board for Industrial and Financial Reconstruction made an inquiry under section 16 of the Act and declared on 28/10/1987, that the petitioner is a sick industrial company. On the same day, orders were passed nominating IRBI, as the operating agency, and appointing a nominee director. A draft scheme was prepared and published in the newspaper dated 31/01/1989, calling for objections. After hearing objections, the Board approved the scheme and fixed a rehabilitation period of eight years commencing from 1/11/1989, during which period the scheme would be implemented. It is thus pleaded that the proceedings to recover dues, if any, are illegal, in view of section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985, except with the previous consent of the Board. This position cannot be disputed.

(3.) We, accordingly, issue a writ of mandamus directing the respondents not to resort to coercive steps for recovery of the amounts of disputed Central sales tax due for the relevant period, in each of these writ petitions, pursuant to the impugned notices, without the permission of the Board constituted under the Sick Industrial Companies (Special Provisions) Act, 1985.