Court No. - 16
Case :- WRIT TAX No. - 236 of 2018 Petitioner :- M/S Bhargava Book Depot Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Aloke Kumar Counsel for Respondent :- C.S.C.
Hon'ble Ashwani Kumar Mishra,J.
Heard learned counsel for the parties. With the consent of counsel for the parties, this petition is taken up for final disposal at the admission stage itself.
Petitioner claims to be a registered dealer and engaged in the sale of books. The books are exempted from tax so far as U.P. VAT Act is concerned. The authorities, however, have treated that the petitioner is not publishing books but he is engaged in the job work, and therefore, in respect of books supplied to the Jharkhand education authorities, it is liable to pay tax. In respect of such grievance, an appeal is filed which is pending. Arising out of refusal to grant interim relief matter has been taken to tribunal and the second appeal is pending. During pendency of appeal, upon stay application the tribunal has granted stay to the extent of 85% of demand and directed the balance amount to be deposited. It is this order of the tribunal which is under challenge in this petition.
Learned counsel for the petitioner submits that there is a categorical finding in the order of tribunal that the petitioner is not having funds with it, and therefore, the stay ought to have been granted in respect of entire amount.
Learned Standing Counsel on the other hand submits that the tribunal has adequately protected the interest of the petitioner and no interference is required.
A perusal of the order of the tribunal would go to show that upon examination of bank account and other materials produced, a finding is returned that petitioner is not possessed of sufficient funds and there is liquidity crunch. Despite such finding, the tribunal has observed that it is not clear as to whether the petitioner is not in position to deposit entire amount. The finding of tribunal in that regard appears to be contradictory.
In the facts and circumstances, it would be appropriate to permit the petitioner to furnish security other than cash or bank guarantee in respect of the entire disputed amount with the assessing authority within two weeks, upon which the first appellate authority shall proceed with disposal of appeal on merits. Writ petition is accordingly disposed of.
Order Date :- 26.2.2018 Ashok Kr.