- (1.) THE instant writ petition has been filed in the Registry yesterday. On an urgency being mentioned, necessary permission was granted. Accordingly, by means of second notice, the instant writ petition? has been? duly notified by the Joint Registrar (Listing) and sent along with the records of the writ petition for orders.
(2.) LEARNED counsel for the petitioner submits that the petitioner is a company registered under the Companies Act and it deals in manufacturing and sale of non-filtered cigarettes and is duly registered in the office of Deputy Commissioner, Commercial Tax, Lucknow. As the petitioner's company incurred huge losses, it applied to the Board for Industrial and Financial Reconstruction (BIFR) for rehabilitation under the Sick Industrial Companies (Special Provision) Act, 1985 (SICA). On 3.4.1997, the BIFR passed an order in Case No.17/97 declaring the petitioner a sick industrial company within the meaning of Section 3 (1) (o) of SICA and appointed State Bank of India as an operating agency (OA) under Section 17 (3) of SICA to prepare a rehabilitation scheme. On 16.12.2002, the BIFR sanctioned a rehabilitation scheme for 8 years from the date of sanction/implementation of scheme which was to be treated as 31.3.2003. In the meantime, the petitioner-company received a hand written letter dated 31.3.2012 from the office of Assistant Collector, Commercial Tax, Lucknow, demanding that the petitioner has to deposit an outstanding amount of Rs.3,20,92,406 for Assessment Year 2007-08 to 2011-12 under Entry Tax, failing which recovery proceeding shall be initiated against the petitioner company. Subsequently, the petitioner's godown was sealed by the Ameen on 9.4.2012. Subsequently, a notice was sent by the Assistant Collector, Sector - 9, Commercial Tax, Lucknow stating that the Entry Tax for the Assessment Year 2007-08 till 2011-12, was due and payable by the petitioner, asking to be deposited by 10.5.2012, failing which the petitioner's seized goods in the godown sealed by the Ameen, shall be auctioned for recovery of the dues assessed amount. Learned counsel for the petitioner has submitted that? against the issuance demand notice dated 31.3.2012, the petitioner preferred an application before the State Government through the Principal Secretary, Tax and Registration/Institutional Finance, under Section 71 and 39 of UP VAT Act read with Section 13 of the UP Tax on Entry of Goods into Local Areas, 2007, which is pending before the Principal Secretary for disposal. Further, the petitioner submitted a detailed application for deferment of the amount assessed and made a proposal for paying 50% cash of the assessed amount in 24 instalments over 24 months and prayed for depositing the 50% bank guarantee in a time period of 5 months. According to the provisions of Section 71 of of the Act, the State Government may allow the deferment of payment of any existing or future dues payable by an industrial unit under the provisions of this Ordinance or allow payment of such dues in such number of installments as may be specified, if such industrial unit is declared a sick unit in accordance with the guidelines specified in this behalf by an authorized body constituted by the Central Government or the State Government in connection with the rehabilitation of Sick Industrial Units, and is approved for rehabilitation by an approved agency, appointed by the Central Government or the State Government.
(3.) IN this view of the matter, the petition is finally disposed of with the directions that the application under Section 71 U.P. VAT Act be decided by the State Government expeditiously preferably within a maximum period of two months from the date a certified copy of this order is filed before it, by passing a speaking order. Till disposal of the application auction/recovery proceedings shall be kept in abeyance.;