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2011 (2) TMI 1327 - HC - VAT and Sales TaxRehabilitation scheme - outstanding dues - Held that:- The words "outstanding dues" and "current dues" have to be understood in the context in which rehabilitation scheme is prepared, and the object and purpose of section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The object of preparing rehabilitation scheme, and to give a protective umbrella to the sick units for rehabilitation is to provide for deferment or for a different treatment of the payment of dues, prior to the cut-off date, which may be termed as outstanding dues. The current dues for the purpose of rehabilitation scheme are those dues, which fall due after the cut-off date. The liabilities created, taxes falling due, assessed and demand raised after the cut-off date, do not fall within the protection of section 22 of the SICA Act. Any demand in pursuance of the assessment orders, prior to the cut-off date has to be classified as outstanding dues, to be protected by the rehabilitation scheme. In the case of reassessment, after remand of a period prior to cut-off date, the dues do not partake the character of current dues. The writ petition is allowed with declaration that demand for the years 1983-84 and 1986-87, on the orders passed by Assistant Collector, Grade I, Commercial Taxes, Modi Nagar, Ghaziabad shall be included, and be treated as covered by the rehabilitation scheme, as it was framed, or may be modified subsequently. If any amount has been recovered by way of attachment, the same will be subject to adjustment by the BIFR, or provision may be made for its adjustment, in the rehabilitation scheme.
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