9911796707
TMI Blog2014 (7) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... 014 passed by the learned Commercial Tax Tribunal, Lucknow Bench II, Lucknow in Appeal No. 107/2014 for the assessment year 2010-11, by which revisionist has been directed to deposit 20% of the total amount for the year 2010-11 and stayed 80% of the VAT tax by allowing the appeal partly. Submission of learned counsel for applicant is that the applicant is a Public Limited Company incorporated under Indian Companies Act, having its registered office at Delhi and the applicant is engaged in the business of manufacturing motor vehicles/motor chassis at its factory situate at Chinhat Deva Road, Lucknow. The applicant exports complete buses outside India. It manufactures chassis at Lucknow according to the specifications of the export order, ge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounted to be a transaction exigible to tax under Central Sales Tax Act and the assessing authority has also treated the office of the applicant at Mumbai to be a separate firm and the office of the applicant at Lucknow to be a separate firm. It is submitted by the learned counsel for applicant that the finding of the assessing authority is directly contrary to the Supreme Court decision in Sahani Steel & Press Work Ltd. vs. C.T.O. reported in 1985 (Vol.4) SCC 173, wherein it has been held that Branch office and head office of the firm do not constitute separate legal entities and they are part and parcel of the same juristic entity. It is also submitted that vide assessment order dated 28.02.2014, for the Assessment Year 2010-11 (Central) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said liability. The further submission is that the said decision has been followed in Honda Siel Cars vs. Commissioner of Commercial Taxes, Lucknow reported in 2010 UPTC 1152 and hence the Tribunal was not justified in not granting complete relief. Learned counsel for applicant also submitted that in the case of Pennar Industries Ltd. vs. State of Andhra Pradesh reported in 2009 Vol (39) NTN page 126 it has been held that if on cursory glance it appears that the demand raised has no legs to stand, it would be undesirable to require the assessee to pay full or substantive part of the demand. The petitions for stay should not be disposed of in a routine manner on unmindful of the consequences flowing from the order requiring the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the judgment in the case of M/s Tata Motors Ltd. Chinhat Industrial Area, Lucknow vs The Commissioner, Commercial Taxes, U.P. Lucknow reported in [VSTI 2011.....B-244. In this case of the revisionist, which pertains to the Assessment Year 2007-08, this Court modified the order of the Tribunal to the extent that if the revisionist deposits 10% of the total demanded tax within a specified period, 90% of the demanded tax shall be kept in abeyance till disposal of the appeal and the revisionist was further directed to furnish security of the stayed amount within 30 days to the satisfaction of the Assessing Authority. Relevant paragraphs 9 and 10 of the said order is reproduced as under:- &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal has been entertained or admitted for consideration and order impugned is likely to visit the party with civil consequences judicial approach requires that during the pendency of appeal the operation of such order must be suspended in order to avoid undue hardship to the party concerned and to preserve the rights of the parties pending adjudication of the lis. Further, in the case of I.T.C. Ltd. vs. Commissioner (Appeals), CUS. & C.EX. MEERUT-I reported in 2005 (184) E.L.T. 347 (All.), it has been held that it was incumbent upon the Tribunal to examine the prima facie case and the appellate orders and ought to have stayed the disputed amount of tax. The relevant para 35 reads as under: &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly to exonerate from the total liability on disposal of his appeal. Dispensation of deposit should also be allowed where two views are possible." After hearing both the parties, the instant Trade Tax Revision is being disposed of by modifying the impugned order dated 28.04.2014 to the extent that if the revisionist deposits 10% of the total demanded tax within a period of one month, the 90% of the demanded tax shall be kept in abeyance till disposal of the appeal. The revisionist is further directed to furnish security of the stayed amount within one month to the satisfaction of the Assessing Authority. The First Appellate Authority is further directed to decide the First Appeal within a period of three months from the date of receipt of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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