VAISHALI FLOUR MILLS, PATNA Vs. STATE OF BIHAR

JUDGEMENT

(1.) A concluded sales tax assessment for two assessment years of the petitioner was reopened. After such reopening, fresh assessment has been made. In terms thereof the petitioner was liable to pay approximately Rs. 44 lacs on account of tax. In addition to that it has been held that the petitioner is liable to pay penalty quantified at three times the amount of tax.

(2.) PETITIONER has preferred appeals which are pending. In the meantime cash credit accounts of the petitioner maintained with two branches of the State Bank of India have been attached by the taxing authorities. However, inasmuch as the petitioner has no drawable limit in the cash credit accounts, the taxing authorities have not been able to recover any amount despite attachment of those two accounts. Petitioner approached the appellate authority seeking stay of recovery of the disputed taxes. The appellate authority granted a conditional stay in one of the appeals by directing the petitioner to deposit 20% of the demand. Petitioner having not paid 20% of the demand, inasmuch as 20% of the demand amounts to 80% of the demand on account of tax, no stay has, in fact, been obtained. In relation to the other appeal, no stay has been accorded by the appellate authority. Petitioner has filed revision applications before the Tribunal in relation to the conditional order passed in one appeal and refusal to pass any order on the other appeal. Those revisions are pending and at the same time the appeals are also pending.

(3.) THE situation obtaining by reason of what has been stated above has created a stymied condition. The State has not been able to get any part of its dues and having regard to the attachment, the petitioner has not made the cash credit accounts operative.