M/S Solar Industries India ... vs The State Of Maharashtra Thr. ...
2017 Latest Caselaw 3350 Bom

                                             1                            wp.3761.17.odt       


                IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                  NAGPUR BENCH : NAGPUR


                               WRIT PETITION NO.3761 OF 2017


       M/s. Solar Industries India Limited,
       a registered company having its
       Plot No.11, Zade Layout,
       Bharat Nagar, Nagpur.             ...                  APPELLANT


                                    .. Versus ..


       1. The State of Maharashtra,
           Through its Secretary,
           Finance Department,
           Mantralaya, Mumbai.

       2. Deputy Commissioner of Sales Tax,
           NAG-VAT-E-003 (LTU-II),
           Vikrikar Bhavan, Civil Lines, 
           Nagpur.                          ...            RESPONDENT
                                                                      S
                                                                        


       -=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
                  Mr. Rahul Thakkar, Advocate for the Appellant.
                      Mr. H.R. Dhumale, A.G.P. for the State.
       -=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
                                          
                                    CORAM : M.S.SANKLECHA & 
                                                   MANISH PITALE, JJ.

DATED : June 20, 2017.

P.C.

1. Mr. Dhumale, learned Assistant Government

Pleader appearing for the respondents/State, waives notice.

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At the request of the counsel, the petition is taken up for final

disposal at this stage.

2. This petition under Article 226 of the Constitution of

India challenges the notices dated 13.06.2017, issued under

Section 33(1) of the Maharashtra Value Added Tax Act, 2002

(the Act) by the Deputy Commissioner of Sales Tax, Nagpur.

The impugned notices attach five bank accounts of the

petitioner in Bank of India, Indusind Bank, UCO Bank and IDBI

bank to secure dues of the Revenue to the extent of Rs.4.80

Crores. The above impugned attachment of the Bank

Accounts has been done consequent to the order dated

23.02.2017 of the Maharashtra Sales Tax Tribunal at Mumbai

(Tribunal), which dismissed the appellant's appeal filed under

Section 18A of the Central Sales Tax Act, 1956, relating to

financial year 2009-10 & 2010-11.

3. The basic controversy between the parties is

whether the appellant is liable to pay Central Sales Tax in

Maharashtra as the movement of goods, according to the

Revenue, from one State to another State was occasioned by

the contract of sale or as contended by the petitioner, that

the goods have been stock transferred from Maharashtra to

other State and sales tax has been paid in the transferee

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state where the goods are sold. Tribunal by its order

dtd.23.02.2017 has upheld the stand of the Revenue resulting

in the demand of sales tax to the extent of Rs.4.80 Crores.

4. It is the petitioner's contention that the order of

Tribunal dtd.23.02.2017 is appelable to the Central Sales Tax

Appellate Authority (C.S.T.A.A.) under Section 20 of the

Central Sales Tax Act, 1956. The petitioner has on

05.06.2017 already filed an appeal and stay application from

the order dated 23.02.2017 of the Tribunal to the C.S.T.A.A.

within the prescribed time. However, the petitioner states

that its appeal and stay application as filed before C.S.T.A.A.

cannot be disposed of as the post of its Chairman is lying

vacant, and therefore, states that the C.S.T.A.A. is not passing

any order. The petitioner received a notice dated 12.04.2017

from the Registrar of C.S.T.A.A. informing the petitioner that

the cases listed before C.S.T.A.A. have been adjourned until

further orders.

5, Inspite of the above facts, it is submitted that the

petitioner was shocked to receive communication dated

13.06.2017 from the Sales Tax Department informing it that

its five bank accounts, which are subject matter in this

petition, have been attached in its entirety for recovery of tax

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dues aggregating to Rs.4.80 Crores.

6. The petitioner has a right of appeal to the C.S.T.A.A.

against the order of the Tribunal under the Central Sales Tax

Act. The petitioner has filed its appeal and application for

stay within the prescribed time before C.S.T.A.A. The appeal

and stay application could not be heard and listed for no fault

of the petitioner. In the above circumstances, no action

should be taken by the Revenue to the petitioner's prejudice.

Particularly when it is not the case of the Revenue that the

petitioner will siphon any of its amount and the Revenue may

not be able to recover its dues. Fairness would demand that

till the C.S.T.A.A. decides the stay application, no coercive

proceedings be adopted against the petitioner by the

Revenue.

7. In the above view, the impugned notices dt.

13.06.2017 are quashed and set aside. However, we are of

the view that the petitioner should secure the dues of the

State in the form of bank guarantee or any other mode so as

to ensure that in case appeal of the petitioner is dismissed, no

prejudice would be caused to the Revenue.

8. Mr. Thakkar on taking instruction states that the

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petitioner will keep an amount of Rs.4.81 Crores separately in

a fixed deposit account. The same would be available for the

benefit of the Revenue, subject to further orders passed by

the C.S.T.A.A. on the stay application. The petitioner will

forward a photo copy of the Fixed Deposit of Rs.4.81 Crores

made by it, to the Revenue within 15 days from today.

9. The petition is disposed of accordingly.

(MANISH PITALE, J). (M.S.SANKLECHA, J.)

waghmare