TOSHALI CEMENT PVT. LTD. Vs. STATE OF ORISSA

JUDGEMENT

(1.) The subject matter of the present proceeding is a challenge to a demand raised against the present Petitioner by the Sales Tax Authority exercising powers under Sec. 9(C) of the Orissa Sales Tax Act and Sec. 7 (1) of the Central Sales Tax Act which was in fact a liability of the erstwhile industry M/s. Snehadhara Industries Ltd. (SIL) which was taken over by the present Petitioner.

(2.) In the impugned order dtd. 27/10/2003 passed by the Commissioner of Commercial Taxes, Orissa in the Petitioner's Revision Case No. PU-250/03-04, it has been observed that a pre-requisite for fastening liability of the transferer company to the transferee company as far as sales tax dues is concerned is determining whether in fact there is a complete transfer of all liabilities of the transferer entity. For this purpose, in paragraph-8 of the impugned order dtd. 27/10/2003, a direction has been issued to the Department to "gather evidence regarding transfer of business in entirety to fasten liability on the Petitioner". Six months time was granted to the Department for that purpose.

(3.) While the present petition was pending, this Court had by an order dtd. 30/6/2006 recorded the submissions of learned counsel for the Department that he was not in a position to inform the Court whether the said investigation had been completed or not. Three weeks time was sought and granted for that purpose.