{"id":52485,"date":"2003-12-05T00:00:00","date_gmt":"2003-12-04T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/parag-fans-and-cooling-systems-vs-commercial-tax-on-5-december-2003"},"modified":"2016-05-15T18:07:03","modified_gmt":"2016-05-15T12:37:03","slug":"parag-fans-and-cooling-systems-vs-commercial-tax-on-5-december-2003","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/parag-fans-and-cooling-systems-vs-commercial-tax-on-5-december-2003","title":{"rendered":"Parag Fans And Cooling Systems &#8230; vs Commercial Tax &#8230; on 5 December, 2003"},"content":{"rendered":"<div class=\"docsource_main\">Madhya Pradesh High Court<\/div>\n<div class=\"doc_title\">Parag Fans And Cooling Systems &#8230; vs Commercial Tax &#8230; on 5 December, 2003<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2006 143 STC 231 MP<\/div>\n<div class=\"doc_author\">Author: A Sapre<\/div>\n<div class=\"doc_bench\">Bench: A Sapre<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p> A.M. Sapre, J.  <\/p>\n<p>1. In substance, the case of the petitioner in this petition is that though their case (appeal) is still pending before the State Appellate Forum (annexure P 10) against the order dated April 16, 2002 (annexure P 9), passed by S.L.C. (State Level Committee), where the question involved is, whether petitioner can be granted exemption from payment of sales tax on the goods manufactured by them in their industrial unit, the sales tax (commercial tax) authorities have attached the properties of the petitioner for non-payment of sales tax by impugned notices of attachment (annexure P 19). In other words, the grievance of the writ petitioner is that when the larger and\/or main question, viz., whether petitioner is entitled to claim exemption by way of deferment of payment of sales tax\/commercial tax on the goods manufactured and sold by them is pending consideration before the appellate authority, yet the State has a right to recover the tax from the petitioner because their (petitioner&#8217;s) application for claiming deferment of tax has been dismissed by the<\/p>\n<p>2.    Heard Shri PM Choudhary, learned Counsel for the petitioner and Shri S. Mukati, learned Government Advocate for the respondent-State.\n<\/p>\n<p>3.    Having heard learned Counsel for the parties and having perused record of the case, I am inclined to dispose of this petition by giving certain directions as mentioned infra.\n<\/p>\n<p>4.    In my considered opinion, in a case like the one, the proper course   is   to   direct   the    State   Appellate   Forum    (respondent No. 4) to decide the appeal (annexure P 10) filed by the petitioner against the order of S.L.C. within the shortest possible time. Indeed, it is really a matter of concern that the appeals are not disposed of by the appellate forum for a long period thereby keeping the dealers in lurch as to what is the fate of their case. In other words, the decision in appeal if goes in petitioner&#8217;s favour would not make them liable to pay tax forthwith whereas decision going against them (petitioner) will make them liable to pay tax forthwith. In such circumstances, the State must first decide the appeal and then take appropriate action against the petitioner in the light of the outcome of the appeal. The view taken by me is in accord with the view taken by this Court in the case, reported in (1992) 25 VKN 426 (Karnataka Explosives Limited v. Sales Tax Officer).\n<\/p>\n<p>5.   Learned Counsel for the State placed reliance on the decision  (Jiwajirao Sugar Company Ltd. v. State of Madhya Pradesh), I find this case to be slightly distinguishable on facts and secondly, the reliance placed by me on a decision reported in (1992) 25 VKN 426 (Karnataka Explosives Limited v. Sales Tax Officer) being later in point of time has to be preferred inasmuch as the same is directly on the issue involved in this case.\n<\/p>\n<p>6.   Accordingly and in view of aforesaid discussion, the petition is disposed of finally by giving following directions :\n<\/p>\n<p>1. The respondent No. 4&#8211;State Appellate Forum shall decide the appeal (annexure P 10) filed by the petitioner against the order of S.L.C. (communicated to petitioner on April 16, 2002) annexure P 9 within a period of six months from the date of production of this order by the petitioner.\n<\/p>\n<p>2.  The petitioner will appear and produce the copy of this order before State Appellate Forum on December 15, 2003.\n<\/p>\n<p>3.  Till the disposal of appeal, by State Appellate Forum, the petitioner will  not  transfer,  alienate  or  encumber  any  of their properties to any person for consideration or otherwise.\n<\/p>\n<p>4.  The petitioner will also furnish adequate security in any form in favour of concerned Commercial Tax Officer safeguarding the interest of Revenue to the extent of the liability of tax which is subject-matter of impugned demand notice (annexure P 19). This will be done within one month.\n<\/p>\n<p>5.  The petitioner will also furnish written undertaking in favour of concerned Commercial Tax Officer that they shall abide by the orders passed by the appellate authority and in the event of decision going against them, they shall deposit the entire tax liability within one month from the date of the appellate order.\n<\/p>\n<p>6.  The appellate authority shall decide the appeal strictly on merits in accordance with law and uninfluenced by any of the observations made by this Court within the time fixed.\n<\/p>\n<p>7.  Till the disposal of appeal, the operation of impugned demand (annexure P 19) shall remain in abeyance. However, property in question belonging to the petitioner and as specified in demand notice shall remain under attachment.\n<\/p>\n<p>Certified copy within three days.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madhya Pradesh High Court Parag Fans And Cooling Systems &#8230; vs Commercial Tax &#8230; on 5 December, 2003 Equivalent citations: 2006 143 STC 231 MP Author: A Sapre Bench: A Sapre ORDER A.M. Sapre, J. 1. In substance, the case of the petitioner in this petition is that though their case (appeal) is still pending [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,24],"tags":[],"class_list":["post-52485","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madhya-pradesh-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Parag Fans And Cooling Systems ... vs Commercial Tax ... on 5 December, 2003 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/parag-fans-and-cooling-systems-vs-commercial-tax-on-5-december-2003\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Parag Fans And Cooling Systems ... vs Commercial Tax ... on 5 December, 2003 - Free Judgements of Supreme Court &amp; 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