BIFR protection bars coercive sales tax recovery against a sick company during pending inquiry without prior permission.

Coercive recovery of assessed sales tax against a sick industrial company is barred while a reference is registered before the BIFR and the inquiry is pending under the Sick Industrial Companies (Special Provisions) Act, 1985. Section 22 prevents enforcement action during the protected period, and recovery cannot proceed without prior BIFR permission. The statutory protection continues through the pendency of the inquiry and the later stages contemplated by the Act, so recovery of the assessed amount remains restrained unless such permission is obtained.

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Issues: Whether recovery of assessed sales tax could be made against a company whose reference was registered before the BIFR and whose inquiry was pending under the Sick Industrial Companies (Special Provisions) Act, 1985.

Analysis: The company had been registered as a sick industrial unit and the BIFR inquiry was pending. In view of the bar contained in Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985, coercive recovery of the assessed amount could not be made without the prior permission of the BIFR. The protection continued during the pendency of the inquiry and the subsequent stages contemplated under the Act.

Conclusion: Recovery of the assessed amount was restrained unless prior permission of the BIFR was obtained.

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