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M/s Ambuja Cements Limited Versus The State of Punjab and others

2016 (2) TMI 613 - PUNJAB AND HARYANA HIGH COURT

Constitutional validity of requirement of mandatory pre-deposit of 25% without giving any discretion to the revisional authority to waive such deposit. - Section 65(3) of the Punjab Value Added Tax Act, 2005 (PVAT) - Held that:- provisions of Section 65(3) of PVAT Act are held to be intra vires, however, the Tribunal shall decide the matter in accordance with law in terms of the judgment in Punjab State Power Corporation Limited's case [2016 (2) TMI 245 - PUNJAB AND HARYANA HIGH COURT] - Decided .....

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des mandatory deposit of 25% tax, interest and penalty as a condition precedent for hearing of revision without giving any discretion to the revisional authority to waive such deposit. Further prayer has been made for quashing the demand notice dated 2.2.2015, Annexure P.10 directing the petitioner to deposit an amount of ₹ 5,13,09,680/-. 2. A few facts relevant for the decision of the controversy involved as narrated in the petition may be noticed. The petitioner is a company duly registe .....

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t ) amounting to ₹ 94,51,58,556/- and ₹ 8,08,58,339/- under the Central Sales Tax Act, 1956 (in short, the CST Act ) was exempt from payment of tax in view of the provisions of the Punjab General Sales Tax (Deferment and Exemption) Rules, 1991 which was deducted out of the eligible amount available to the petitioner. In addition, an amount of ₹ 10,26,19,108/- was also deducted on account of tax calculated on stock transfers and deducted from exemption limit which was otherwise .....

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or the period of six years from the end of the financial year. On the expiry of the said period, the petitioner was of the belief that the entire proceedings had become final and no further action would be required in respect of assessment year 2006-07. On 7.10.2014, the petitioner received a notice whereby respondent No.2 initiated revisional proceedings under Section 65 of the PVAT Act read with Section 9(2) of the CST Act for the assessment year in question observing that there was huge diffe .....

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oner filed reply dated 18.11.2014 and the same day the order was reserved. On 21.11.2014, the petitioner filed Civil Writ Petition No.23873 of 2014 to challenge the revisional proceedings. Vide order dated 21.11.2014, Annexure P.2 this Court declined to interfere at that stage but granted liberty to raise all the pleas in appropriate proceedings in case any adverse order was passed. On 30.12.2014, the petitioner was served with order dated 19.11.2014, Annexure P.3 revising the order passed by th .....

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sment year 2007-08, the petitioner had deposited an amount of ₹ 64,50,000/- and for the year 2010-11, it had deposited a sum of ₹ 4,95,81,836/-. In total, it had deposited a sum of ₹ 5,60,31,836/-. Vide order dated 17.7.2014, Annexure P.7, the DETC(Appeals) set aside all those orders and the matters were remitted back to the assessing authority. The petitioner approached the Tribunal against the order dated 19.11.2014, Annexure P.3. The petitioner also prayed that the aforesaid .....

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The petitioner submitted reply dated 2.2.2015, Annexure P.9 stating that its revision before the Tribunal was pending. When the executive of the petitioner had attended the proceedings on 6.2.2015, he was again issued a demand notice dated 2.2.2015, Annexure P.10 directing the petitioner to deposit an amount of ₹ 5,13,09,680/-. Hence the instant writ petition to challenge the vires of section 65(3) of the PVAT Act. 3. We have heard learned counsel for the parties. 4. Section 65(3) of the P .....

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P No.26920 of 2013 (Punjab State Power Corporation Limited vs. The State of Punjab and Others) vide order dated 23.12.2015, wherein after considering the relevant statutory provisions and the case law on the point interpreting Section 62(5) of the PVAT which is pari materia with Section 65(3) of PVAT Act, following conclusions were drawn:- 33. It is, thus, concluded that even when no express power has been conferred on the first appellate authority to pass an order of interim injunction/protecti .....

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of Section 62(5) of the PVAT Act are directory in nature meaning thereby that the first appellate authority is empowered to partially or completely waive the condition of pre-deposit contained therein in the given facts and circumstances. It is not to be exercised in a routine way or as a matter of course in view of the special nature of taxation and revenue laws. Only when a strong prima facie case is made out will the first appellate authority consider whether to grant interim protection/injun .....

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