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2017 (5) TMI 1545 - HC - VAT and Sales TaxDemand of interest - Section 26 (4) (a) of the Chhattisgarh Vanijyik Kar Adhiniyam, 1994 - appellate authority claimed that merely on the ground of registration in the Board for Industrial and Financial Reconstruction (BIFR), interest liability cannot be waived - whether merely on account of registration of the petitioners in BIFR, the petitioners would be relieved of the interest liability which is statutory in nature under Section 26 (4) (a) of the Act of 1994 under the provisions of the BIFR? Held that: - it is quite vivid that the petitioner industry has been registered with the BIFR on 29-5- 2002 whereas, the liability is prior to that and it has not been demonstrated that any scheme has been sanctioned including waiving of such an amount of interest liability by the scheme approved by the BIFR and it has not been established that the said interest amount has been included in the scheme approved by the BIFR - the petitioners' plea that merely because the petitioner industry has been declared as sick industry on 29-5- 2002, whereas the interest liability is prior to that, the petitioners having failed to demonstrate that it has included in the sanctioned scheme (if any) by the BIFR, are not entitled for the protection of Section 22 (1) of the SIC Act. Since the amount in dispute i.e. the interest liability has not been demonstrated to be covered under any scheme sanctioned by the BIFR in favour of the petitioners and that amount has been included in such scheme; merely on account of registration / declaration of the petitioners industry as sick industry with the BIFR, it cannot be held that the petitioners are not liable to pay interest amount. Petition dismissed - decided against petitioner.
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