9911796707
TMI Blog1996 (2) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... first respondent from proceeding to recover penal interest under section 24(3) of the Tamil Nadu General Sales Tax Act, 1959, pursuant to the proceedings dated November 23, 1995, for the assessment 1984-85 to 1986-87. The petitioner submits that it was declared as a sick industrial company under Central Act 1 of 1986 and for the purpose of rehabilitation of the industry a scheme was framed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be paid within 30 days, and on failure to pay within 30 days, it will be recovered as if it were an arrear of land revenue or fine imposed by a Magistrate. The learned counsel for the petitioner submits that the proceedins so initiated for recovery by way of distraint proceedings as if it were an arrear of land revenue is contrary to the provisions of section 22 of the Sick Industrial Companie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Board and highlights the fact that the Government of Tamil Nadu was agreeable for the rehabilitation scheme only on condition that the petitioner should pay the sales tax arrears in monthly instalments including interest under section 24(3) of the Act and as the petitioner had not complied with the terms of the scheme the benefit of the scheme is not available to the petitioner and the entire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is in arrears, yet that arrears can be recovered by resorting to distress proceedings only after compliance of the provisions of section 22. There is no provision in the scheme which denies the benefit of rehabilitation scheme to a party who is in arrears by not complying with the conditions laid down therein. The provisions of section 22 are beneficial provisions intended to rehabilitate a sick ..... X X X X Extracts X X X X X X X X Extracts X X X X
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