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2019 (7) TMI 1235 - HC - VAT and Sales TaxSick units - levy of interest for delay - Whether an application filed and registered before the BIFR would extend protection to the Unit under Section 22 (1) of the Act, 1994 - HELD THAT:- Section 22(1) of the SIC Act is unambiguous. Unless the scheme would be extended to the extent of even non-payment of outstanding dues of various Revenue Departments, in this case, the Sales Tax Department, mere registration of an application of a sick unit before the BIFR cannot be said to be a ground for either exemption from such payment or will provide protection as a justification for non-payment - Another thing of significance is that the registration of the application of the Appellant has been made on 29.05.2002, whereas this liability has arisen prior to the said date and we are of the opinion that in matters of obligations created under taxing statute, no leeway as such can be permitted to shy away from compliance or else the entire fiscal management of the State and the Union will go into disarray. The defence taken by the Appellants before the learned Single Judge did not stand the judicial test, keeping in mind the precedents which have been taken note of in the order impugned of the learned Single Judge. Appeal dismissed.
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