IN THE HIGH COURT OF JUDICATURE AT PATNA
CWJC No.10220 of 2011
M/S Mars Mountain Security Service Private Limited
Versus
The Union Of India & Ors
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For the Petitioner : Mr. Gautam Kejriwal, Advocate
For the Respondents: Mr. R.S. Pradhan, Sr. Advocate
2 29.7.2011 The petitioner seeks quashing of the part of the order
dated 25.4.2011 whereby the Respondent no.6 has directed the
petitioner to deposit 30% of the assessed amount to be deposited as pre-
deposit required under section 7(O) of the Employees Provident Funds
and Miscellaneous Provisions Act, 1952 (in short ‘the Act’).
The petitioner is a private limited company and has
registered office at Patna. The petitioner’s company engaged in the
business of providing security services, human resources outsourcing
and allied activities against nominal charges. The petitioner was initially
assessed under section 7A of the Act by the Authorized Officer and a
final order of determination was passed on 6.5.2008 wherein net
liability for a sum of Rs.14,583/- for the period of October, 2000 to
September, 2004 was deposited by the petitioner. Thereafter, the
petitioner was again re-assessed for the same period under section 7C of
the Act by order dated 29/30.4.2010 fixing the liability to the tune of
Rs.87,37,594/-. The grievance of the petitioner is that the aforesaid
amount was assessed without giving any reasonable notice to the
petitioner.
Being aggrieved by the aforesaid order dated 29.4.2010
passed under section 7C of the Act, the petitioner moved this Court in
2
C.W.J.C.No.6065 of 2011. The learned Single Judge by order dated
15.4.2011 observed that the petitioner should prefer an appeal under
section 7(I) of the Act. This court also granted liberty to the petitioner to
prefer an application under section 7(O) of the Act before the Appellate
Tribunal for waiver of pre-deposit amount. The application of the
petitioner for waiver of pre-deposit amount under section 7(O) of the
Act was disposed of with a direction to pay 30% of the assessed amount
by order dated 25.4.2011 passed in A.T.A. No.310(3) of 2011.
Learned counsel for the petitioner submits that the
petitioner is a small organization and without much resources. He
submits that on account of economic hardship, it would be almost
difficult to the petitioner to pay 30% of the assessed amount. He further
submits that the Hon’ble Apex Court in the case of Ravi Gupta Vs
Commissioner of Sales Tax, Delhi reported in (2009) 5 SCC 208
observed that in an appropriate case pre-deposit amount can be waived
depending upon the facts and circumstances of the case. The petitioner
submits that a sum of Rs.96,000/- has already been deducted from the
Bank Account of the petitioner.
Having heard counsel for the parties, I am inclined to
lower down the pre-deposit amount from 30% of the assessed amount to
a sum of Rs.5 lacs apart from Rs.96,000/- which has already been
deducted. On depositing a sum of Rs.2 lacs the attached Bank account
of the petitioner would be released as also ordered by the learned
Tribunal. The petitioner would deposit the balance pre-deposit amount
of Rs.3 lacs within total period of two months from today.
With the aforesaid modification in the order of the learned
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Appellate Tribunal dated 25.4.2011 passed in A.T.A. No.310(3) 2011,
this writ petition stands disposed of.
KHAN (S.P. Singh,J)