TMI Blog2014 (7) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... dering the application for stay/ waiver of a pre-deposit, as required under the law, the Court must apply its mind as to whether the appellant has a strong prima facie case on merit. In case, it is covered by the judgment of a Court/ Tribunal binding upon the Appellate Authority, it should apply its mind as to whether in view of the said judgment, the appellant is likely to succeed on merit, if an appellant have strong prima facie case, is asked to deposit the amount of assessment so made or penalty so levied, it would cause undue hardship to him, though there may be financial restrain on the appellant running in a good financial condition. Trade Tax Revision is being disposed of by modifying the impugned order dated 28.04.2014 to the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant exports complete buses outside India. It manufactures chassis at Lucknow according to the specifications of the export order, gets bus assembled outside U.P. and dispatches the complete bus directly after assembly from the Mumbai port and also makes central sales directly from Lucknow to various registered dealers of outside State of U.P. against stipulated Form-C under the Central Sales Tax Act. Submission of learned counsel for applicant is that Form-F are obtained from respective branch offices and forms-C are obtained from the purchasers located outside the State of U.P. from their assessing authorities situated outside the State of U.P. and then handed over to the applicant for furnishing to its assessing authority within th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el of the same juristic entity. It is also submitted that vide assessment order dated 28.02.2014, for the Assessment Year 2010-11 (Central) was passed and a demand of ₹ 65,98,09,496/- created and out of this tax liability, the applicant has already deposited a sum of ₹ 31,56,07,942/-, accordingly the balance tax liability was calculated at ₹ 34,42,08,554/-, which is treated to be an admitted tax payable by the applicant on which a further sum of ₹ 17,76,76,371/- was payable as interest and the total outstanding amount comes to the tune of ₹ 52,18,77,925/-. The applicant aggrieved by the aforesaid assessment order, filed an appeal before the Additional Commissioner (Appeals) Commercial Taxes, Lucknow along wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve part of the demand. The petitions for stay should not be disposed of in a routine manner on unmindful of the consequences flowing from the order requiring the assessee to deposit additional or part of the demand. Learned counsel also relied upon the case of Kribhco Shyam Fertilizers Ltd. vs. CST, reported in 2009 NTN (Vol 40) 67, wherein 75% stay was granted by the Tribunal and this Hon'ble Court was pleased to stay the balance 25% tax and direction was issued for early disposal of appeal. Learned counsel appearing for applicant submits that by means of impugned order dated 28.04.2014 the appeal has been partly allowed by granting stay of a further 20% of the disputed amount of tax. It also submits that the applicant earlier fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days to the satisfaction of the Assessing Authority. Relevant paragraphs 9 and 10 of the said order is reproduced as under:- 9. Considering the peculiar facts and circumstances of the case, the impugned order passed by the Tribunal dated 04.03.2011 is modified to the extent that if the revisionist deposits 10% of the total demanded tax for the Assessment year 2007-08 latest by 31.03.2011, ninety percent of the demanded tax shall be kept in abeyance till disposal of the appeal. The revisionist shall furnish security of the stayed amount within 30 days to the satisfaction of the Assessing Authority. It is further provided that the deposited amount shall not be adjusted against any other head. 10. In view of the above, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the disputed amount of tax. The relevant para 35 reads as under: In view of the above, the aforesaid authorities make it clear that the Court should not grant interim relief/stay of the recovery merely by asking of a party. It has to maintain a balance between the rights of an individual and the State so far as the recovery of sovereign dues is concerned. While considering the application for stay/ waiver of a pre-deposit, as required under the law, the Court must apply its mind as to whether the appellant has a strong prima facie case on merit. In case, it is covered by the judgment of a Court/ Tribunal binding upon the Appellate Authority, it should apply its mind as to whether in view of the said judgment, the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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