- (1.) M/s Hi-Tech Carbon Co. was engaged in the manufacture and sale of "Carbon Black". This Company was sold/transferred to the petitioner as a going concern by way of a slump sale. The assets and liabilities of the erstwhile Company became the assets and liabilities of the petitioner Company.
(2.) Pursuant to the enactment of U.P. Tax on Entry on Goods Act, 2000 as well as U.P. Tax on Entry of Goods into Local Areas Act, 2007 (hereinafter referred to as the "Acts"), the assessing authority served notices dated 25.4.2008 proposing to impose Entry Tax on Carbon Black Feed Stock (hereinafter referred to as "CBFS") for the period 2004-05, 2006-07 and 2007-08. Since the petitioner disputed the imposition of any tax liability on the entry of CBFS in the local area, on the ground, that it was not a notified goods under the Acts, the petitioner filed Writ Petition No.1153 of 2008 challenging the validity of the Entry Tax Act, 2007 and praying for a declaration in the nature of mandamus or prohibition restraining the assessing authority from imposing Entry Tax for the Assessment Years 2004-05, 2005-06, 2006-07 and 2007-08. Interim orders were passed by the Writ Court, dated 15.5.2008, directing the petitioner to furnish security other than cash or bank guarantee to the satisfaction of the authority for the amount of Entry Tax due for that period. According to the petitioner, the following security was furnished :
(3.) Thereafter assessment orders dated 30.6.2010 and 12.8.2010 for the period 2006-07 and 2007-08 were passed wherein Entry Tax was assessed on CBFS and a demand of Rs.12,01,10,541/- and Rs.8,71,36,090/- was created, but, the said demand was not enforced in view of the interim order passed by the Writ Court. The writ petition was, eventually, dismissed by the High Court along with the bunch of writ petitions in the leading case of ITC Limited. vs. Stae of U.P. and others, 2012 NTN(48) 1, wherein the validity of the Entry Tax Act 2007 was upheld. The judgment of this Court was challenged by the petitioner by filing a Special Leave Petition wherein an interim order dated 10.1.2012 was passed staying the operation of the judgment subject to deposit 50% of the accrued tax liability/arrears and furnishing bank guarantee of the balance amount. Subsequently, the interim order was modified by the Supreme Court by another order dated 31.1.2012 to the following effect: " If for any reasons the appellants in these appeals want to seek statutory remedies provided under the Act against the assessment orders, best judgment assessment orders, provisional assessment orders, appeals or revisions before appropriate forum, they are at liberty to do so and if such appeals or revisions are filed, we direct the statutory authorities to consider the same in accordance with law.";