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Ahuja Sales Corporation Thru' Prop. Anil Ahuja & Another v. State Of U.P. & Others - WRIT TAX No. 518 of 2006  RD-AH 6204 (22 March 2006)
CIVIL MISC. WRIT PETITION NO.518 OF 2006
Ahuja Sales Corporation, Budaun and another. ....Petitioner
State of U.P. and others. ....Respondents
Hon'ble Rajes Kumar, J.
By means of present writ petition, petitioner has challenged the order of the Tribunal dated 27.02.2006, by which Tribunal has allowed the stay application in part and has stayed 75% of the disputed amount of tax for the assessment year 1998-99.
Brief facts of the case are that the petitioner was authorized dealer and engaged in the business of purchase and sale of Bajaj two wheeler and its parts. Petitioner had sold the vehicles to M/s Jyoti Automobiles, Meerut against Form 3-A. It appears that initially the exemption was allowed on such sales against Form 3-A but on the basis of the information that M/s Jyoti Automobiles, Meerut had not disclosed the purchases, proceedings under section 21 of the Act was initiated and tax on the sales claimed to have been made against Form 3-A had been levied. First appeal filed by the petitioner was dismissed. Petitioner filed second appeal before the Tribunal alongwith waiver and stay application. Tribunal allowed the waiver application and waived the condition to deposit one third of the disputed amount of tax but stay application was partly allowed and stayed the realisation of disputed amount of tax to the extent of 75%.
Heard learned counsel for the parties.
With the consent of both the parties, present writ petition is being disposed of at the admission stage itself.
Learned counsel for the petitioner submitted that the petitioner is a disabled person and the business has been completely closed. He submitted that there is no fund in the bank account and the petitioner is running in a great financial crisis. He submitted that in support of his contention that the petitioner was running in a great financial crisis, an affidavit was filed before the Tribunal, which has not been disputed. He submitted that merely because M/s Jyoti Automobiles, Meerut had not shown the purchases in their books of account, claim of exemption against Form 3-A can not be refused. He submitted that From 3-A, which has been issued by the said party has not been found forged.
Having regards to the entire facts and circumstances of the case, order of the Tribunal requires modification. The realisation of the disputed amount of tax to the extent of 95% for the assessment year 1998-99 is stayed. Petitioner is directed to furnish the security of the stayed amount during the pendency of the appeal. Tribunal is also directed to dispose of the appeal for the assessment year 1998-99 expeditiously.
With the aforesaid observation, writ petition is disposed of.
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