9911796707
TMI Blog2014 (9) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... Act (hereinafter referred to as the "Act"), which was granted and the said unit was exempted from payment of Trade Tax upto 2007. The respondent No.4 ran into losses and recovery of trade tax dues was initiated against respondent No.4, pursuant to which the unit of respondent No.4 was attached by the trade tax authorities. The said respondent also took a loan from Pradeshiya Industrial & Investment Corporation of Uttar Pradesh Ltd. (hereinafter referred to as "PICUP"). The recovery proceedings were also initiated by the PICUP and on 25.1.2003, pursuant to a tacit understanding between the trade tax authorities with PICUP, the unit of respondent No.4 was attached under Section 29 of the State Financial Corporation Act. It is alleged that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e recovered from the petitioner. The petitioner further contended that pursuant to the show cause notice, the recovery certificate was issued against the petitioner and, consequently, the present writ petition was filed. We have heard Sri Amit Negi, the learned counsel for the petitioner and Sri C.B.Tripathi, the learned Special Counsel appeared for the State of U.P. The learned counsel for the petitioner contended that the assets of respondent No.4 was purchased pursuant to the proceedings initiated under Section 29 of the State Financial Corporation Act, which was free from all encumbrances and, consequently, the liabilities of respondent No.4, which is a going concern, could not be recovered from the petitioner merely because some of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption from or reduction in the rate of tax was or could be granted to the former manufacturer: Provided that the aforesaid officer may, in its discretion and for adequate and sufficient reasons to be recorded in writing, entertain an application moved within six months of the date of the expiration of the period specified in this sub-section. Provided further that such manufacturer and successor manufacturer for the purpose of liability of tax shall be treated as the transferor and the transferee under Section 3-C. Provided also that in computing the unexpired portion of the period, the period during which the production of successor manufacturer remains closed on account of an order passed by any Court or Board for Industrial and Fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther such assessment is made or penalty is imposed prior to or after such discontinuance, and, subject as aforesaid, the provisions of this Act shall apply as if every such person or partner were himself as a dealer: Provided that where it is found that a change has occurred in the constitution of the firm or association, the firm or association as reconstituted as well as partners or members of the firm or association, as it existed before re-constitution, shall jointly and severally be liable to pay tax including penalty, if any, due from such firm or association for any period before its reconstitution. (2) Liability to tax of transferee.- Where the ownership of the business of any dealer liable to pay tax is transferred, the transfero ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the competent authority in accordance with the provision of the second proviso to Section 4-A(2-B) read with Section 3-C(2) of the Act. We find that the said condition imposed by the competent authority was accepted by the petitioner and that the petitioner availed the exemption from payment of trade tax for the remaining period. The petitioner, however, did not pay the tax of the earlier period which was required to be paid by the the earlier manufacturer and which became jointly and severally payable by the petitioner under the provisions of Section 3-C(2) of the Act by the petitioner. The petitioner cannot now turn around and contend that the said condition imposed was arbitrary or opposed to public policy or the condition was in cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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