TATA STEEL LIMITED Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) IN this writ petition, the petitioner seeks issuance of a writ in the nature of certiorari for quashing the interlocutory order dated 31.1.2008 passed by the Commissioner of Commercial Taxes, Jharkhand, Ranchi in Revision Case No. 369 of 2007, whereby she has disposed of the stay application filed by the petitioner and ordered for stay of recovery of the demand of Rs. 1,38,33,84,081/ - if the petitioner deposits 20% of the said amount i.e. Rs. 27,66,76,816/ -.

(2.) THE petitioner is manufacturer of iron and steel products having its plant at Jamshedpur. It has various Stockyards/Branch Sales Offices all over the country. For the financial year 2003 -2004, returns were filed by the petitioner - company before the Assessing Authority showing the local sales, interstate sales, sales outside State and export sales. The Assessing Authority, namely the Deputy Commissioner of Commercial Taxes, Urban Circle, Jamshedpur, passed the assessment order assessing the total tax payable by the petitioner -company. The Assessing Authority finally held that a further sum of Rs. 1,38,33,84,081/ - is payable by the petitioner. Consequently, a demand notice was issued. The petitioner instead of filing statutory appeal as provided under Section 45 of the Bihar Finance Act, 1981, challenged the said order by filing revision before the Commissioner under the provisions of Section 46(4) of the said Act. In the meantime, for the recovery of the tax, the Assessing Authority passed order for attachment of the bank account of the petitioner, as a result of which, the petitioner -company filed interlocutory application before the Commissioner in the said revision case for stay of order of attachment and also for stay of recovery of the amount. The Commissioner after hearing the parties stayed the recovery of the amount assessed by the Assessing Authority on the condition of deposit of 20% of the said amount by the petitioner.

(3.) BEFORE appreciating the submissions made by the learned senior counsel, I would first like to refer the provisions of statutory appeal as provided under Section 45 of Bihar Finance Act, 1981. Section 45 reads as under: 45. Appeal. - -(I) Subject to such rules as may be made by State Government under this part any dealer objecting to an order of assessment or penalty or both passed by the prescribed authority against him, or a person objecting to an order of penalty passed against him or an order under Section 27 may appeal to the Joint Commissioner or the Deputy Commissioner specially authorized in this behalf. (2) And where an order of assessment or penalty against a dealer has been passed under Section 17 or 19 by an authority other than the prescribed one as a consequence of the proceeding having been transferred by the Commissioner under Sub -section (5) of Section 9, the dealer may appeal in the prescribed manner to the authority next above the officer passing that order not being an authority below the rank of a Joint Commissioner. (3) No appeal under Sub -section (1) or (2) shall be admitted unless the dealer objecting to an order of assessment has paid twenty per centum of the tax assessed or full amount of admitted tax whichever is greater. (4) Every appeal under this section shall be filed within forth -five days of the receipt of the notice of demand but where the appellate authority is satisfied that the appellant had sufficient reason for not preferring appeal within time, it may condone the delay. (5) The appellate authority while disposing of an appeal against an order, other than an order under Section 27, may (a) (i) Confirm, annual, reduce, enhance or otherwise modify such order; or (ii) Set aside the order directing the authority below to make fresh order after further enquiry on points as may be directed; and (b) in other cases pass such order as it may, for reasons to be recorded in writing, deem fit. (6) No order under this section shall be passed without giving reasonable opportunity of hearing to the appellant as also the authority whose order has been appealed against. (7) Any appeal or proceeding relating thereto filed and pending before the Deputy Commissioner since before the coming into force of this part will be deemed to have been filed and/or transferred to the Joint Commissioner or before the Deputy Commissioner specially authorized in this behalf to hear and dispose of the same, and any appeal relating to a period prior to the coming into force of this part shall after the enforcement of this part be filed before the Joint Commissioner or Deputy Commissioner specially authorized in this behalf.