Sick industry protection does not stop tax assessment or limitation, while admitted tax remains essential for appeal maintainability.

Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 was held to protect a sick industrial company only from coercive recovery measures, not from assessment, appeal, revision or the running of limitation under the sales tax law; the assessment was therefore not barred. The best judgment assessment was upheld because the assessee failed to produce books of account and showed no material that the turnover estimate was arbitrary or unsupported. The appeal was rejected for non-payment of admitted tax, since such payment was a condition precedent to maintainability, and the delayed revision disclosed no sufficient cause for interference or remand.

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Issues: (i) Whether section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 suspended the limitation for assessment, appeal or revision under the sales tax law and barred the assessment itself. (ii) Whether the best judgment assessment was vitiated for want of proper basis. (iii) Whether the appeal was maintainable without payment of admitted tax under the proviso to section 12(1) of the West Bengal Sales Tax Act, 1954, and whether the delayed revision deserved discretionary interference and remand.

Issue (i): Whether section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 suspended the limitation for assessment, appeal or revision under the sales tax law and barred the assessment itself.

Analysis: Section 22 protects an industrial company against coercive recovery measures, winding up, execution, distress, receiver proceedings, and certain money-recovery actions during the relevant stages of sickness proceedings. The protection does not extend to stopping assessment proceedings or appellate and revisional proceedings under the sales tax law, and it does not suspend the running of limitation for such proceedings. Its effect is confined to recovery of arrears, not to determination of tax liability.

Conclusion: The section did not suspend limitation or bar the assessment, appeal or revision.

Issue (ii): Whether the best judgment assessment was vitiated for want of proper basis.

Analysis: The assessee did not produce books of account despite opportunities, and no material was shown to demonstrate that the assessed turnover was arbitrarily inflated or contrary to earlier assessment data. In the absence of reliable accounts and any factual foundation showing disproportion or illegality, the assessing authority was justified in resorting to best judgment assessment.

Conclusion: The best judgment assessment was upheld.

Issue (iii): Whether the appeal was maintainable without payment of admitted tax under the proviso to section 12(1) of the West Bengal Sales Tax Act, 1954, and whether the delayed revision deserved discretionary interference and remand.

Analysis: Payment of admitted tax was a condition precedent for the appellate authority to entertain the appeal, and the unpaid admitted tax justified rejection of the appeal. The revision was filed after substantial delay, and the explanation offered did not establish sufficient cause. The Tribunal also declined to invoke its extraordinary discretion to grant a remand, since the assessee had financial capacity at relevant times and yet withheld payment of admitted tax even after receiving funds intended for tax discharge.

Conclusion: The appellate rejection and revisional dismissal were valid, and no remand was warranted.

Final Conclusion: The statutory protections invoked by the assessee did not undo the assessment or extend limitation, and the assessee's failure to pay admitted tax and explain the delay left no basis for interference with the orders below.

Ratio Decidendi: Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 protects only recovery proceedings and does not suspend limitation or bar tax assessment, appeal or revision, while compliance with the statutory requirement of paying admitted tax remains a prerequisite to appellate maintainability.

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