Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2007 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (10) TMI 578 - HC - VAT and Sales TaxAuction sale - Penal charges and demurrage charges - Held that:- On a reading of the condition it is clear that on payment of the entire amount by the successful bidder and on handing over of the goods to the purchaser, if the purchaser failed to take delivery within the voidah date, the woods would have to be kept in double or single lock as the case may be until such time as agreed to take delivery thereof and the purchaser shall be liable to pay a demurrage of ₹ 30 per tonne per day for each day the wood kept in double or single lock beyond 75 days from the date of confirmation. In this case, except the payment of earnest money deposit and 20 per cent of the bid amount, the other amounts are yet to be paid and are in dispute. Even the other amounts paid pursuant to the direction issued by this court by way of demand drafts have been returned to the petitioner.The goods were neither handed over to the petitioner nor kept in double or single lock by the respondents. Hence, there is no question of demurrage.So also the demand made for penalty is not tenable. In this case, the High Court directed the respondent to release the goods on obtaining the bank guarantee for the disputed amount, but in spite of the bank guarantee being furnished, the goods were not released and as a matter of fact, a contempt petition has also been filed against the respondent. Hence, on this point also, we are of the view that the respondent is not legally entitled to claim penal charges and demurrage charges. For the foregoing reasons, the writ appeals are dismissed confirming the order made in the respective writ petitions. The conditions imposed by the learned single judge shall be followed by either of the parties. The time for furnishing bank guarantee and payment as directed in condition No. 3 in the impugned order stands extended by one month from the date of communication of this order. The connected miscellaneous petitions are consequently dismissed.
|