Patna High Court
Mrf Limited vs State Of Bihar on 14 February, 2023
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.1845 of 2023
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MRF Limited a company incorporated under the Companies Act, 1956 having
its registered office at 2nd Floor, Emarat Al Harmain, Bank Road, Patna
through its authorized signatory James T M (aged about 45 years) son of
Mathai resident of Thadathil House, Vazhithala P.O. Thodupuzha at present
residing at Flat No. 103 Sharda Apartment, Road No. 3, New Patliputra
Colony, Patna 800013.
... ... Petitioner/s
Versus
1. State of Bihar through Commissioner of State Tax, Bihar, Patna having its
office at Vikas Bhawan, Patna.
2. Addl. Commissioner of State Tax, (Appeal), Central Division, Patna having
its office at Pant Bhawan, Boring Road, Patna.
3. Asst. Commissioner of State Tax, Patliputra, Central, Bihar.
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr. D.V.Pathy, Advocate
For the Respondent/s : Mr.Vikash Kumar, SC 11
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CORAM: HONOURABLE THE ACTING CHIEF JUSTICE
and
HONOURABLE MR. JUSTICE MADHURESH PRASAD
ORAL JUDGMENT
(Per: HONOURABLE THE ACTING CHIEF JUSTICE)
Date : 14-02-2023
The present writ application under Article 226 of
the Constitution of India has been filed seeking quashing of an
order dated 12.01.2023 passed by the Additional Commissioner
of State Tax (Appeal), Central Division, Patna, in Appeal Case
No. ST/PR-63/2022-23 for the period 2016-17 directing
Patna High Court CWJC No.1845 of 2023 dt.14-02-2023
payment of 35% of disputed demand of tax and 20% of the
interest by 25.01.2023. The petitioner has preferred the
aforesaid appeal against an order passed under Section 31(1) of
the Bihar Value Added Tax Act, 2005 by the Assistant
Commissioner of State Tax, Patliputra Circle, Patna.
2. It is manifest that the said order has been passed
on a stay application filed by the petitioner before the appellate
authority while assailing an order passed by the Assistant
Commissioner of State Tax, Patliputra Circle, Patna dated
30.09.2022.
3. It is evident on plain reading of the order that the
same has been passed in accordance with the provision under
Rule 46 (4)(iii) of the Bihar Value Added Tax Rules, 2005
which reads as under:-
"The appellate or the revisional authority, as the
case may be, may, in his discretion, by an order in
writing, stay realisation of the amount of tax or interest,
part or whole, as the case may be, in dispute, on such
terms and conditions as he may deem fit and proper in
the facts and circumstances of the case."
4. Mr. D.V.Pathy, learned counsel appearing on
behalf of the petitioner, has argued that the impugned order of
the appellate authority passed on appellant's prayer for stay of
the demand notice, is non-speaking and the same has been
Patna High Court CWJC No.1845 of 2023 dt.14-02-2023
passed without duly considering the petitioner's application for
stay of the demand.
5. Language of Clause (iii) of sub-rule (4) of Rule
46 is unambiguous. It confers upon the appellate authority or
the revisional authority under the Act, a discretion to stay
realisation of amount of tax or interest, part or whole, as the
case may be, in dispute, on such terms and conditions as he
may deem fit and proper in the facts and circumstances of the
case.
6. Mr. D.V.Pathy, learned counsel, has submitted
that the expression 'discretion' used in clause (iii) of sub-rule
(4) of Rule 46 should have been exercised judiciously by the
appellate authority and not in a mechanical manner.
7. We have carefully perused the impugned interim
order of the appellate authority. The appellate authority, in our
considered opinion, on due application of clause (iii) of sub-
rule (4) of Rule 46, has stayed the realisation of tax with certain
conditions as mentioned therein which are neither unjust nor
onerous.
8. We do not find any legal infirmity requiring this
Court's interference.
9. This writ application is, in our view, devoid of
Patna High Court CWJC No.1845 of 2023 dt.14-02-2023
merit and accordingly, dismissed.
(Chakradhari Sharan Singh, ACJ)
( Madhuresh Prasad, J)
Sunil/-
AFR/NAFR
CAV DATE
Uploading Date 18.02.2023
Transmission Date
