TMI Blog1997 (9) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... islature enacted the Bhaskar Textile Mills (Acquisition and Transfer) Act, 1986 (Act 4 of 1986) hereinafter referred to as the Acquisition Act providing for acquisition and transfer of the Bhaskar Textile Mills Ltd, Jharsuguda. This Act received the assent of the President on March 7, 1986 and, by virtue of sub-section (2) of section 1, came into effect retrospectively from August 13, 1985. Sub-section (1) of section 3 of the Act provides for right of the owner in respect of the textile undertaking, in terms whereof, the right, title and interest of the owner in relation to the textile undertaking stood transferred and vested absolutely in the State Government. By sub-section (2) of section 3, the undertaking which stood vested in the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olds, powers, authorities and privileges and all property, movable and immovable including lands, buildings, workshops, stores, instruments, machinery and equipment, cash balance, cash in hand, reserve funds, investments and all other rights and interest in, or arising out of such property, as were immediately before the appointed day in the ownership, possession, power or control of the owner of the textile undertaking, whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto. ................ 5(1). Every liability of the owner of the textile undertaking in respect of any period prior to the appointed day shall be the liability of such owner and shall be enforceabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... category III shall rank equally and be paid in full, but if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly; (c) the liabilities specified in category III shall be discharged subject to the priorities specified in this section, in accordance with the terms of the secured loan and the priority inter se, of such loans; and (d) the question of payment of liability with regard to a matter specified in a succeeding category shall arise if a surplus is left after meeting all the liabilities specified in the immediately preceding category. 19(1) On receipt of the claims under section 17, the Commissioner shall arrange the claims in the order of priority specified in the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of tax, penalty or interest or any amount which a person is required to pay under sub-section (1) of section 13-A or for which he is personally liable to the State Government under sub-section (4) of the said section (or any amount which a person is required to deduct and deposit into the Government treasury under the provisions of section 13-AA) shall be a first charge on the property of the dealer or such person, as the case may be. 19.. Tax payable by transferee of business.-(1) When the ownership of the business of a dealer liable to pay tax under this Act is entirely transferred any tax payable in respect of the business till the date of the transfer and remaining unpaid at the time of transfer, shall, without prejudice to any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wise expressly provided in this section or in any other section of this Act, liability in relation to the textile undertaking for any period prior to the date of vesting should not be enforced against the State Government or the Corporation. In other words, the liability incurred by the erstwhile industry remains the liability of the erstwhile owner irrespective of the vesting. Admittedly what is due to the Revenue towards arrear of tax is a sum of Rs. 27,018 for the period 1980-81, (O.S.T.) Act, Rs. 58,593 for the period 1982-83 against O.S.T. Act and a sum of Rs. 14,04,365 for the period 1982-83 under Central Sales Tax Act. These dues raised by demands under both Central as well as State Acts were for the period prior to the date of vesti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the O.S.T. Act. 8.. However, we should not be understood to mean that under no circumstances the statutory dues payable by the erstwhile owner up to the date of vesting cannot be recovered from the petitioner, for this will be contrary to the provisions contained in the Acquisition Act itself. The said Act provides for appointment of a Commissioner of Payments who can be approached by any person having a claim against the owner of the textile undertaking up to the date of vesting. Section 18 of the Acquisition Act provides the manner in which different claims specified in the Schedule shall be considered. In other words, it lays down categories of claims on priority and precedence basis against the erstwhile owner. Various liabilities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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